The Chancellor recently set out an increase to the National Living Wage (NLW), which come into effect next year. The NLW will rise by 6.6%, to £9.50 per hour, from 1st April 2022.
The National Minimum Wage will also increase from 1st April 2022 giving the following rates:
Aged 23 + (NLW) £9.50
Age 21 – 22 £9.18
Age 18 – 20 £6.83
Under 18 £4.81
Apprentice £4.81
You can find full details of statutory rates, including sick pay, family friendly leave and compensation, for information under our news and resources tab, above.
What do I need to do?
These increases are likely to have a big impact on employers, so planning your staffing budget early is essential.
Consider where you may be able to reduce staffing costs to balance the books.
Consider the costs of raising wages of higher paid workers, where a differential in pay is justified. For example between front line staff and supervisors.
It could be that this increase means a restructure is necessary; a process which can take several weeks to plan and action.
We advise employers to begin planning now to minimise risks and maximise engagement of their employees over any changes.
If you need support with people planning, do reach out for independent advice. We are currently offering a free 15 minute consultation to new enquiries – no strings attached. Simply call Redway HR on 01582 252500.
