With all of the changes coming this April with the National Living Wage, chances are you probably have some questions. Why is this necessary? How will it affect my business? Am I really going to have to redo my entire payroll?
Right now there are more than 6 million jobs in the UK that are paying less than the living wage. That’s 6 million hard working, loyal employees who either have to take on additional jobs or simply do without. To give you some perspective, in 2014 there were nearly 1 in 3 women (28%) and 1 in 5 men (18%) aged 25 or older who were in this situation, and the National Living Wage is the rallying cry to put an end to the poverty they are enduring.
Starting in April of 2016, employers will be required by law to pay the National Living Wage of at least £7.20/hour to employees who are 25 or older. That means for workers currently at the minimum wage, each hour they work will be an extra fifty pence in their pockets and a huge boost to their peace of mind.
What does this mean for employers? In April businesses will be under very strict scrutiny to make sure they are paying the new wage. For a lot of companies these changes could mean reviewing their entire payroll, and in the daily grind of business finding time to redo payroll is a massive task. Employers will be required to reconfigure their budgets while taking into account each workers’ individual situations to ensure that the standard is met. The amount of overhead and the hike in pay means employers may have to find other sources of income, or consider having less employees. This has led to a great deal of worry from everyone involved about job loss, especially in regions that have a higher volume of low wage workers. Most companies can’t afford to cut workers for the sake of productivity, but also can’t afford to spend precious time re-evaluating their payroll.
That is where the PayPod comes in. The PayPod is a perfect choice to take care of all your payroll needs. We provide fast, reliable, and flexible service that can keep your business up to speed with all the changes that are coming in April. This lets you worry more about growing your business the way you want to. Let us help you! We would love to chat and help you see how we can help, no strings attached.
Stay tuned for more in-depth looks at how employers and employees alike will be affected by these changes!
For further information check out the following websites: