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Preparing for a wage hike

Is your business ready to cope with introduction of the National Living Wage in April 2016?

The press is reporting the views of some that recruitment will be scaled back, workforces reshaped, and prices put up to cover the extra 50p per hour that will need to be paid to lower-earning workers. Increasing basic pay to £7.20 for workers aged 25 and over may not be something that affects you or your business significantly or at all. But even if that’s so, it could well affect those you’re doing business with; suppliers, for example, who may have to look at their commercial options.

Wherever you stand in all of this, it’s sensible to address your mind to the potential consequences. And bear in mind, too, that the living wage is set to go up to £9 per hour by 2020, so you might want to factor that into your planning.