The National Minimum Wage (NMW) is the minimum amount that employers are legally required to pay their workers. This is set by the government and is based on the recommendations of the independent advisory group, the Low Pay Commission ...
This means that workers aged 21 and over will see an increase of over £1 per hour in their pay. This is a significant change that will have a positive impact on the lives of many workers who have been struggling to make ends meet on the current minimum wage.
Just for completeness, from the 1st of April 2024, the NMW for 18 to 20 year olds will be £8.60, if they're under 18 then it's £6.40 and the Apprentice rate will also be £6.40!
It is estimated that around 2 million workers will benefit from this change, with the majority being in the retail, hospitality, and care sectors. These are industries that were hit hard by the pandemic, and this increase in wages will provide much-needed relief for workers.
However, there are concerns that the increase in the NMW may also have some negative impacts. Some businesses, especially small and medium-sized enterprises, may struggle to afford higher wages and may be forced to reduce their workforce or cut back on hours. This could have a detrimental effect on the economy and could potentially lead to job losses.
While there may be some challenges for businesses, the government's support through the Employment Allowance will help to ease the burden. It is a positive move towards ensuring that workers are paid a fair wage for their hard work.
And I believe this will contribute to UK-wide economic growth.
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