Tag Archives: Retail

NLW leads to significant pay increases in retail

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

Earnings show signs of growth in most sectors

Earnings growth looks to have picked up a little, according to the latest data on average weekly earnings from the ONS. Average earnings grew by 2.3% across the whole economy for the three months to May, compared to the same period a year ago. This is up from 2.0% for the three months to April, compared to the same period last year. Some sectors showed much greater increases than previously. In finance and business services, average weekly earnings rose by 2.8%, up from 1.7% in the year to April. In manufacturing, earnings growth was 2.2% in May, up from 1.7% in April. Continue reading this free article

In focus: Payments for making unsocial hours

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

Update on the National Living Wage

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

Earnings grow at 2% but wide sectoral differences remain

Average weekly earnings continue to grow at around 2% across the economy, down from the 3% level seen last summer, but there are wide variations between the different sectors. In the latest figures released by the ONS on 18 May, strong earnings growth has continued in construction, while in the lower-paying sector of retail and hospitality, earnings growth has dropped sharply, to 1% in March. Continue reading Earnings grow at 2% but wide sectoral differences remain

Earnings growth weakens to 2% as economy falters

Growth in earnings looked to have slowed considerably towards the end of last year, according to the latest average weekly earnings figures from the ONS (20 January). These show that average weekly earnings rose by 2.0% across the whole economy in the year to November 2015, down from 2.4% in October and from 3.4% in the year to September. Continue reading Earnings growth weakens to 2% as economy falters

Faster pay growth in retail lifts private sector earnings

Alastair Hatchett, Visiting Fellow, University of Greenwich

Average weekly earnings grew by 3.0% in the year to August, up from 2.9% in the year to July, according to figures released by the ONS on 14 October 2015. The rate of growth in the private sector was 3.4%, compared to just 1.2% in the public sector. Continue reading Faster pay growth in retail lifts private sector earnings