The Chartered Institute of Payroll Professionals
News On Line
15 November 2021
The Living Wage Foundation has announced today that the real Living Wage has increased to £11.05 per hour in London, and £9.90 per hour across the rest of the UK. This announcement kicks off Living Wage Week and follows the government’s plans to increase the National Living Wage (NLW) to £9.50 per hour, starting in April 2022. The real Living Wage is calculated and set independently from the UK government, based on actual living costs rather than the median earnings calculations used for the NLW. It is a voluntary scheme and currently more than9,000 employers commit to paying the increased amount to over 300,000 workers.
Employers signed up to the scheme are advised to implement the new rates as soon as they can, but it must be done within six months. This means that all impacted employees should receive the new rate by 15 May 2022.
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Equal Pay Day 2021
19 November 2021
Equal Pay Day 2021 18 November 2021 was Equal Pay Day, organised by the Fawcett Society, a charity campaigning for gender equality and work rights for women.
The date represents the day in the year where women, on average, stop earning comparatively to men, due to the gender pay gap. Fawcett calculated that the gender pay gap for 2021 is 11.9%, up from 10.6% in 2020.
The Fawcett Society recognises the impact the coronavirus has had on figures and statistics. The figures used are taken from the Annual Survey of Hours and Earnings (ASHE) surveys, this year there were significantly less of these surveys completed. As the UK is still in a state of transition there are some situations that are unaccounted for. A disproportionate number of women may have lost their jobs due to higher representation in affected sectors, such as retail and hospitality. Felicia Willow, CEO of the Fawcett Society, said “Whilst gender pay gap repo rting has been effective in getting big employers to act, it needs to go much further – we want to see Government requiring mandatory action plans from employers to tackle gender pay gap in the workforce, as well as sharing data.”
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Bank of England base rate increases to 0.25%
16 December 2021
Following a Monetary Policy Committee (MPC) meeting on 15 December 2021, the Bank of England (BoE) has opted to increase the base interest rate to 0.25%. This has been done in order to maintain the target of 2% inflation, in a way that “ helps to sustain growth and employment .”
The MPC voted eight votes to one to change the current bank rate, a move they had voted against in early November. The next date this is set to be reviewed is 3 February 2022.
The Chartered Institute of Payroll Professionals
Payroll: need to know
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