The much anticipated national living wage has launched today. There’s lots of information on the Living Wage website
but the government is hoping that by increasing wages, people will earn more and rely less on welfare, although they will pay more tax. If you are over 25 and earn less that £7.20 per hour then your salary should increase from today. For most of the staff working at either AllenDay or our sister company Morestaff, we have been paying above the living wage for some time, as we believe that in paying a good salary, we will attract better candidates who are more committed to their roles, which brings about good benefits for our clients.
Why is the national living wage a good thing?
Overall, people will bring home more money, which is very positive. These workers will have more money to spend on their homes, cars, holidays, clothing – basically in all areas of the economy, which will help to maintain the economic recovery. So, this is only going to be a good thing.
Some companies may find that initially, they will pay more for their staff. However, I’m a firm believer that the better paid people are, the more they are committed and motivated to their roles. Companies may feel some short term impact, however hopefully this will be counterbalanced by people staying longer in their roles and being generally happier and more motivated.
Please get in touch if you have any questions about the living wage changes.
Kathy Allen, Director