Wage rises coming.

Wage rises coming.

The national living wage is set rise by 6.2% in what the government says is “the biggest cash increase ever”.

This increase is four times more than the rate of inflation and takes hourly pay for people over 25 to £8.72 from April.

Prime Minister Boris Johnson said: “For too long, people haven’t seen the pay rises they deserve.”
But businesses warned that a sharp increase in wages would put pressure on companies and urged the government to reduce costs elsewhere for firms.

From April 2020, the new rates are:
■ The National Living Wage for ages 25 and above – up 6.2% to £8.72
■ The National Minimum Wage for 21 to 24-year-olds – up 6.5% to £8.20
■ For 18 to 20-year-olds – up 4.9% to £6.45
■ For under-18s – up 4.6% to £4.55
■ For apprentices – up 6.4% to £4.15

But the Federation of Small Businesses (FSB) said “an increase of this magnitude” means firms may recruit fewer people, cancel investment plans or consider redundancies.
“There’s always a danger of being self-defeating in this space,” said Craig Beaumont, FSB director of external affairs and advocacy.
“Wage increases aren’t much good to workers if prices rise, jobs are lost and there’s no impact on productivity because employers are forced to cut back on investing in tech, training and equipment.”

Source: BBC News

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