NMW and NLW have reversed this norm: since 1999, the lowest paid have seen their hourly pay grow faster than all other workers.
And in addition, many more workers have benefited indirectly – the effects of an increase in the minimum wage ripple up the pay distribution, as employers maintain a ‘differential’ between the minimum rate and pay for managers and team leaders just above. With each annual increase, the NMW and NLW have increased the pay of up to 30% of all jobs – up to 7 million workers on current employment levels. Between 1999 and 2018, we estimate that the total benefit to workers of minimum wage increases has been £60 billion. The bottom 1% of workers were paid £2.70 an hour more in real terms in 2018 than they otherwise would have been – an additional £5,000 a year for the lowest-paid full-time workers.
Read the Low Pay Commission’s new report ’20 years of the National Minimum Wage’ here
Rate up to 31 March 2019
Rate from 1 April 2019
% increase
National Living Wage
£7.83
£8.21
4.9%
21-24 rate
£7.38
£7.70
4.3%
18-20 rate
£5.90
£6.15
4.2%
16-17 rate
£4.20
£4.35
3.6%
Apprentice rate
£3.70
£3.90
5.4%
Accommodation offset
£7.00
£7.55
7.9%
Guidance on Calculating the minimum wage
Back to Contents
Low Pay Commission starts its 2019 visits 10 April 2019
In March, the Low Pay Commission (LPC) visited Swansea, Neath and Cardiff in the first of its regional visits this year to gather evidence for its recommendations regarding the National Living Wage (NLW) and National Minimum Wage (NMW) rates for those aged under 25. The LPC is based on a social partnership model comprising employee representatives, employer representatives and independents. Three commissioners travelled to Wales with one representative from each part of the social partnership: Kate Bell (Trade Union Congress), Sarah Brown (University of Sheffield) and Martin McTague (Federations of Small Businesses). We met with employees and their representatives as well as businesses in Swansea, Neath and Cardiff to find out what is happening in the region in terms of the labour market and the local economy. We also met with a group of young people from Swansea to discuss their experiences in finding work in the region. The LPC wrote in a recent blog that it was told that the main issue faced by employers in the region relates to shortages of labour and hiring and retention issues, with some employers responding by paying higher wages to attract and keep staff. Many employers expressed concerns about the impact of Brexit leading to more labour shortages, especially in the case of skilled staff.
Although employers said they were struggling to find workers, some of the workers the LPC spoke talked about the continued poor quality of work, including non guaranteed hours, a lack of sick pay, and poor treatment and a feeling
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
Page 384 of 629
Made with FlippingBook - Online magazine maker