At a difficult time for parts of the retail industry, the National Living Wage (NLW) is exerting a strengthening influence over pay rates and other terms in the sector, according to the latest findings on pay and conditions in retail from IDR.
The Government has accepted the Low Pay Commission’s recommendation for a 4.4% increase in the National Living Wage which takes the rate for workers aged 25 and over from £7.50 to £7.83 an hour, effective from 1 April.
There have also been larger increases to the statutory minimum rates for younger workers, in an effort to close the gap between the statutory rate for ‘adult’ workers and that for workers aged under 25. Continue reading National Living Wage to rise by 4.4% in April
The introduction of the National Living Wage (NLW) in April 2016 has led to a 5.3% increase in median minimum pay rates for established staff across retail. Many employers have revised their pay structures to accommodate this increase, typically by eliminating starter rates or harmonising premiums for unsocial hours. At £7.20, the median rate for the whole sample equals the NLW, though food and non-food retail firms tend to pay higher on average than employers in catering/hospitality. Many firms are paying the new minimum to all staff, despite it being a legal requirement to only pay it to staff aged 25 or over. Continue reading NLW leads to significant pay increases in retail
Pay increases in road transport and distribution are higher on average than for the whole economy, driven mainly by recruitment and retention issues. Our recent survey of pay and conditions indicates growth in employment in the sector, accompanied by pressures around recruitment of drivers and retention of warehouse workers. Continue reading Staffing pressures drive pay rises in logistics
Full-time employees earned £539 a week at the median in April 2016, 2.2% more than the previous year, according to the latest Annual Survey of Hours and Earnings (ASHE) conducted by the Office for National Statistics (ONS). This increase is higher than the growth figure of 1.8% shown in the previous year’s ASHE, and indicates that the trend seen in last year’s survey, of a return to modest earnings growth, has continued with the latest figures. Continue reading ASHE: Lowest-paid fare best as modest earnings growth returns
The National Minimum Wage (NMW) and National Living Wage (NLW) are set annually by the Government based on recommendations from the Low Pay Commission. The table below sets out current and historical rates. The NLW, which was introduced in April 2016, applies to all staff aged 25 and over, while younger (non-apprentice) staff of at least school-leaving age are covered by the appropriate NMW rate for their age group. The apprentice rate applies to apprentices who are under 19 or in the first year of their apprenticeship. Apprentices who are 19 or over, or have completed their first year, are entitled to the appropriate minimum wage rate for their age. Continue reading this free article
The introduction of the National Living Wage (NLW) in April appears to have only had a minor effect on the latest Average Weekly Earnings (AWE) figures. The earnings data released today by the ONS are for the period to the end of April 2016 and the figures were expected to show a boost to earnings in the lowest-paid sector, that covering wholesale, retail, hotels and restaurants. However total pay growth in this large sector for the period from February to April 2016 was comparatively modest at 1.3%, up slightly on the even weaker three-month average of 1.0% for January to March. Continue reading this free article
Pay for working unsocial hours is in the news, as a key issue in the junior doctors’ dispute with the Government, and as one of the terms some lower-paying employers are reducing to offset the new ‘National Living Wage’ for employees aged 25 and over. These examples create the impression that the pressures on unsocial hours pay are mostly downward. However, this is not universally the case, with premiums being maintained in other important sectors like call centres and engineering. Continue reading In focus: Payments for making unsocial hours
Since our last special report on the National Living Wage (NLW), in February, we have been continuing to monitor the effects of the new statutory minimum rate of £7.20 an hour for employees aged 25 and over. Our main finding is that, despite the age limit, many employers have been applying the new minimum to staff aged between 21 and 24 as well, and in many cases to all staff. This is particularly the case in retail, though other companies are looking to alter the age profiles of their workforces, possibly to make future use of the age distinctions contained in the minimum wage structure. Continue reading Update on the National Living Wage
The median pay settlement across the whole economy has remained steady at 2% in the three months to April 2016, according to the latest monitoring figures from IDR’s Pay Climate. The median award has been constant for four consecutive rolling periods, since the three months to January. However, this figure is not necessarily representative of awards across the different parts of the economy where pay outcomes have varied. In this key period for pay setting, higher awards have been reached in the private services sector where the median is 2.5%. Meanwhile, lower awards have been paid in the not-for-profit sector as well as in the public sector, most of which is still formally subject to the Government’s 1% pay cap policy, though variations have begun to appear. Continue reading Whole economy median pay settlement of 2% masks sectoral variation