“Britain deserves a pay rise.”
Those were the inspiring words of the Chancellor in his Summer Budget. But deserved or not, there are a lot of implications for British businesses this April, in order to initiate the new Living Wage for those aged 25 and over.
The wage hike to £7.20 is expected to affect over 6 million employees, with the average worker set to benefit to the tune of £900. However, many are worried that these spiralling costs will mean that employers may need to make redundancies.
With this in mind, the Chancellor has seen fit to amend several other items so as to help the average employer meet the rise in wages from next year.
For instance, Employment Allowance, allowing employers to reduce the amount of National Insurance they pay over, will rise from £2,000 to £3,000 per year from April, while at the same time Corporation Tax will drop to 18%.
Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.
Image courtesy of Serge Bertasius Photography at FreeDigitalPhotos.net