The initial adjustment with the UK’s new Living Wage for employees over the age of 25 is significant – fifty pence an hour to be precise. That kind of change has a lot more weight than some extra coins in your pocket though, and we’ll tell you why.
Better Standard of Living
The Living Wage changes are the product of a vision to have a society where everyone earns higher wages and less people are dependent on benefits. To that end, the government projects that the implemented wage changes will bring about a drastic increase in the standard of living for the UK’s citizens. Fewer families will rely on the government for their daily bread, and the promise of increased financial security will ease the minds of the next generation to enter the workforce.
Happier at Work… and at Home.
It logically follows that with a universal increase in the standard of life, the workers who are affected will be more willing to do their jobs. The Living Wage Foundation reports that 75% of employees even feel the quality of their work has gone up because they feel they are being paid fairly. On top of that, employees of companies who pay a living way report a greater degree of happiness at home, especially considering they don’t have to work longer hours or extra jobs to support themselves.
A study performed by Queen Mary University in 2012 found that employers would definitely expect more productivity from their workers if they paid them a living wage. When you think about the financial side of all this, this kind of thinking just makes sense. With employers having to pay you more, they expect more from you in order to make up income. Steel yourself for higher expectations, but still take heart in the fact that you’re now much closer to being paid what you’re worth.
We mentioned this in our last article about the affects this change will have on employers, but it’s worth restating. The Office for Budget Responsibility projects at least 60,000 jobs will be lost with the living wage requirement, which means some current employees will be forced to look elsewhere for employment. Hopefully you won’t be a part of that number, but it never hurts to be prepared.
If you’re not sure you qualify for the living wage changes, or if April comes around and you want to be certain that your boss is paying you correctly, check out this handy Minimum Wage Calculator. Until then, start planning your new and improved budget for this April!