Pay Rise Pain

Earlier this year George Osbourne announced that he believed the economy was now in a position to be able to increase National Minimum Wage (NMW) above the rate of inflation.

Following an assessment, the Low Pay Commission has decided against the proposed increase of £6.31 to £7.00 but have confirmed a new wage of £6.50 from October 2014. This new rate means that low paid workers will since the biggest percentage increase in their wage since 2008. On average full time workers could be as much as £355 better off each year.

Despite the improved state of the economy many employers with a low paid workforce will be significantly impacted. This coupled with the recent increase in potential fines for not adhering to NMW ruling is sure to put a strain on may employers.