June24619788 No Comments

Minimum wage: How high could the lowest salaries go?

The National Living Wage will rise to £10.50 an hour by 2025, the government has said. So, how high could the lowest wages actually go?

What happens to the minimum wage already affects lots of low paid people – from bar staff to waiters and nursery nurses to sales assistants.

But the planned increases – announced by Chancellor Sajid Javid – mean the wage will increasingly affect many more.

When it reaches £10.50, it will be two-thirds of the median (middle) wage. It is likely to affect one in four employees and will be extended to all employees aged 21 and over by the mid 2020s.

But is there a limit to increasing the lowest wages and what are the benefits and risks of paying more?

How high is the minimum wage?

The UK already has one of the world’s highest minimum wages.

For workers aged 25 and over it is currently £8.21 an hour – a level known as the “National Living Wage”. There are also lower rates for younger workers, ranging from £4.35 to £7.70.

 

Read More – www.bbc.co.uk

June24619788 No Comments

Employment and Wages Are Up Again But Progress Is Slowing

Wages are on the increase amid near record rates of employment, according to official figures.

Data released by the Office for National Statistics this morning reveals unemployment fell by 47,000 to 1.36m in the three months to August and pay rose by 3.1% over the quarter, compared with a year ago, while inflation for the same period was 2.5%.

There were 32.39m people in work over the quarter – down 5,000 on the previous quarter.

Commenting on the data, Pawel Adrjan, UK economist at the global job site Indeed, said Britain’s labour market is slowly pivoting from job growth to pay growth: “Average pay is now growing at its fastest rate since 2008, and the curtain could finally be starting to come down on the lost decade of stagnant wages.

“With the number of new jobs created flatlining as the economy hovers close to full employment, employers are having to fight harder and pay more to recruit staff.

“For the economy to deliver more sustained pay growth it needs an injection of the labour market ‘X factor’: better productivity.”

Also commenting Recruitment & Employment Confederation CEO Neil Carberry said the data reflected the strong performance of the UK’s flexible jobs market, with wages rising in real terms and near record rates of employment.

“But there is some evidence that progress has slowed as businesses enter a holding pattern ahead of any Brexit deal.

“What we need now is for the government to take a pragmatic approach that delivers a smooth Brexit for the economy – and for people’s jobs. A transition period and longer-term clarity and stability on terms of trade and mobility between the UK and the EU are essential to avoiding a bumpy landing.”

Read more – www.recruiter.co.uk