On Friday the 1st April the National Living wage comes into effect for the over 25’s. So what will the effect be on small businesses and their staff?
For some small business owners it’s not great news and in turn it may not be great for the workforce too as some employers may simply not be able to afford to hire as many staff. So on one hand a good deal if you are over 25 and in a job where they ‘can’ afford to keep you on but for others the extra cost may be just too much to afford.
On the whole however most employees are going to benefit from the government’s increase, however the 21-24 age range can expect their wages to fall way behind (probably seeing a small increase over the same time period of just 8%). Over 25’s are going to see a rise of 25% to £9 per hour within the next four years.
So perhaps does this mean we will see more of the 18-24 bracket age group employed by smaller independent businesses such as small shops and, cafes, retailers and restaurants? This same age bracket will have to live on less than their slightly older counterparts and survive on lower wages across the board.
As of the 31st March 2016 the work of a 22-year-old is recognized as adult labor, with minimum earnings of April 1st 2016 the national living wage will reduce its value and the workers’ income – bottom line.