Wage increases must provide affordability and transparency

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Following the announcement of the new levels of National Minimum Wage, the ALMR has called for the Government to provide clarification on future wage rate increases to ensure stability and affordability for businesses.

ALMR Chief Executive Kate Nicholls said: “Costs are continuing to increase and this wage rise, although expected, still represents an above-inflation wage hike that will place additional pressure on businesses.

“If businesses are to have any chance of absorbing theses costs then we need time to allow these increases to settle in. That means no additional increases to the rate of either National Minimum Wage or the National Living Wage until businesses have adjusted to this change. The next review of rates by the Low Pay Commission must be conducted in the round and the dates of changes aligned going forward. We cannot continue to have two dates for different rates.

“The Government has stated that is considering synching the rates of both the Minimum and Living wages. Confirmation of when this is likely to occur will provide employers with some stability and transparency and it would be sensible for this to be an April change. By delaying any further increases in the rate of National Minimum Wage until April 2018, and synching the rates at that time, we can avoid a situation whereby we have two increases in a short space of time to help provide stability for businesses.”



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