The National Minimum Wage comes into force on April 1st meaning that up to 4.5 million people across the country will get a pay rise this week. Employers across the country will be forced to pay the mandatory £7.20 wage to all their workers aged 25 and over. Although the policy will obviously be beneficial to workers, some businesses are expected to struggle to cope with having to pay the extra wages while still balancing their books.
It is not only small to medium sized firms that will be effected, major companies such as Tesco and B&Q have announced that they will have to make changes to the numbers of people that they recruit in order to afford the increased wage bill. So, in the week of this momentous change, we want to know, is the new National Minimum Wage good for your business?
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The Chancellor’s Budget yesterday managed to steer clear of any drama that may imperil the Prime Minister or the upcoming EU referendum. However, there were some morsels in the Chancellor’s speech that were of interest to HR departments. From changes to national insurance contributions to encouraging ‘younger savers’ and rate relief for UK PLCs, there were a number of policy alterations announced that will have to be implemented by HR departments once they are brought into force by government. If you need some background before pushing the ‘vote’ button, you can check out a list of the Chancellor’s announcements here. So, what do you think? Was the Chancellor’s budget a good one for HR?