June 21, 2016

National Living Wage is now in force

When the announcement was first made last summer, there were concerns raised that it could cost the sector in the region of £500million.

It was expected the rules would take a particular toll on those charities which employed large numbers of retail and care staff or those which were tasked with delivering public service contracts.

Following the introduction of the new statutory wage floor there are signs that the changes are starting to bite in some areas.

One charity shop in Merseyside said it wanted to cut its team of managers from eight to five as it tried to accommodate the increased costs. Other non-charitable organisations, which have low paid staff, are reducing benefits and paid breaks to compensate them for the increase in wage costs.

The minimum wage for over 25s increased to £7.20 an hour at the start of April and it is anticipated to rise to £9 an hour by 2020.

For advice on employment and volunteering issues for charities please contact Gemma Ospedale.

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