11 February 2016 0 Comments
Posted in News

Be mindful of new minimum wage laws

Charities are being reminded that new National Living Wage laws are set to take effect from April 1st.

The changes to the statutory wage floor were announced by the Chancellor, George Osborne, in his Budget Speech last summer.

When the new system is implemented, those aged 25 and over will be entitled to a ‘living wage’ of £7.20 per hour. The rate is expected to rise to at least £9 an hour by 2020.

There are, however, concerns over what the new rules will mean for charities, with one study suggesting that the Living Wage could cost the sector £500million by the end of the decade.

Stephen McKay, an associate at the Third Sector Research Centre, previously calculated that the burden may be far more than the Treasury had suggested – with around three in ten of those who work in the sector likely to be eligible for the pay increase.

“An extra half a billion pounds is not a trivial amount of money,” he said, when assessing the likely impact.

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

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