As you may be aware this coming April will see changes to the national minimum wage with a new ‘National Living Wage’ being introduced for workers aged 25 and older. The current minimum wage level will still apply to workers aged 24 and under.
The new National Living Wage will be set at £7.20 per hour which is anticipated to increase to over £9.00 per hour in the next 4 years. For some employers the cost of implementing these new changes will be very challenging and in recognition of this the Government is raising the amount employers can claim through the Employment Allowance.
From April 2016 the Employment Allowance will enable employers to reduce the amount of Class 1 national insurance contributions (NICs) they pay for their employees by up to £3,000. This is up from the previous allowance of £2,000 which is likely to be a help to small businesses and charities in particular.
Some larger companies have already made changes to their pay structure in advance of the introduction of a National Living Wage and have decided to take the approach of paying more than the Living Wage allowance whilst simultaneously reducing weekend and overtime rates or cutting break periods to help pay for the changes.
Whatever your approach, in an ever changing legislative environment coupled with a backdrop of increasing competition, the cost of a flexible and effective labour force is even more important. Copius Resources can help by providing you with a cost effective manpower solution to ensure your business continues to succeed.
If you would like any further information regarding the Living Wage or how our services could help deliver cost reduction or cost benefit for your company please do not hesitate to contact Copius for a confidential discussion.