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what will happen with those who currently earn £9 per hour

iammumtoone
iammumtoone Posts: 6,377 Forumite
Tenth Anniversary 1,000 Posts Name Dropper I've been Money Tipped!
edited 9 July 2015 at 7:40PM in Benefits & tax credits
I currently earn approx £9 per hour which is at the moment more than min wage. I am paid this as my job has more responsibility that those in my workplace that are currently paid min wage.

As from 2020, I will not be earning any more than mim wage. What will happen to me and many others in this situation then? I can see myself asking for a transfer at work to one of the currently min wage jobs, less responsibility and stress for the same wage.

I can't see my employer paying me any more, they will not have to as I will still be at min wage but I can see a position like mine being hard to fill. Who is going to want to do my type of role who is going to want the extra work/responsibility for no extra money?

I am not moaning and I am certainly glad that those on min wage will be getting more. I am just wondering where this leaves the currently higher paid workers, of course my personal opinion would be that we should be paid even more lol but I do realise this is not going to happen!

Comments

  • Tigsteroonie
    Tigsteroonie Posts: 24,954 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    My first salary was £5400pa. After a year, I received a premium for experience and my pay rose to £6000pa. Shortly thereafter, they raised the minimum for the role to £5900.

    I remember trying to explain to my boss that this step eroded any recognition I was receiving for my year's experience, and that I should receive a proportionate increase so as to retain the differential.

    I was 19. I didn't get the rise :D

    I understand what you're asking, and can only say that each employer will have a different idea of whether and how to retain the differential between the bottom of the payscale, and those higher.
    :heartpuls Mrs Marleyboy :heartpuls

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  • iammumtoone
    iammumtoone Posts: 6,377 Forumite
    Tenth Anniversary 1,000 Posts Name Dropper I've been Money Tipped!
    I understand what you're asking, and can only say that each employer will have a different idea of whether and how to retain the differential between the bottom of the payscale, and those higher.

    I don't think many employers will pay more to the currently higher earners as they won't have too. Also I don't see how they will be able to afford to, to pay the extra for the min wage workers is going to hit them. I know there will be some kind of tax break for them but don't understand that bit and even if it does mean the employer will be better off I am sure would they will prefer to keep the extra against their profits!

    This doesn't effect those on £20+ per hour at the moment as the gap between them and min is still wide it will only effect us on around £9 per hour but if you increase that wage it will start to have an impact of those on £15 per hour, they will then want more etc and where will it stop??
  • HappyMJ
    HappyMJ Posts: 21,115 Forumite
    10,000 Posts Combo Breaker
    It's a competitive market. If you want more than £9 an hour or would like to have a much easier job paying MW then quit and take another job.

    I would think that if MW rises by £2.50/hour then your's and everyone else's wages should also rise by £2.50/hour.
    :footie:
    :p Regular savers earn 6% interest (HSBC, First Direct, M&S) :p Loans cost 2.9% per year (Nationwide) = FREE money. :p
  • PasturesNew
    PasturesNew Posts: 70,698 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    What I have seen happen in the last 15 years is that as NMW was risen, salaries of jobs higher haven't risen.... allowing NMW to become "THE wage".

    You can probably expect this to happen to you.
  • tomtontom
    tomtontom Posts: 7,929 Forumite
    What I have seen happen in the last 15 years is that as NMW was risen, salaries of jobs higher haven't risen.... allowing NMW to become "THE wage".

    You can probably expect this to happen to you.

    This ^^

    Whereas now you might get a few pounds extra for seniority, increasing the minimum wage is likely to reduce the difference substantially. As one example in a care setting, senior carers used to get £1 or £1.20 an hour extra, now they get 17p.
  • iammumtoone
    iammumtoone Posts: 6,377 Forumite
    Tenth Anniversary 1,000 Posts Name Dropper I've been Money Tipped!
    HappyMJ wrote: »
    It's a competitive market. If you want more than £9 an hour or would like to have a much easier job paying MW then quit and take another job.
    .

    Yes I understand that. Its quite a way off and I will decide at the time but I won't stay in this job or its equivalent level. Depending on my circumstances at the time I will either be looking for a less responsible job for the same wage or a more responsible job at a higher wage.

    I know its going to be difficult as a lot of us on this level will probably be doing the same thing.
  • egghead
    egghead Posts: 352 Forumite
    I totally understand,

    If for example there is a pay scale such as civil service job, you work on a grade you are qualified for.

    If the minimum wage is increased as intended, then the lowest earner will earn as much on the next pay scale?

    Surely this would mean a restructure?

    As mentioned above employers would lower there role as they are not getting recognised for more responsibility.
  • PlymouthMaid
    PlymouthMaid Posts: 1,550 Forumite
    Seventh Anniversary Combo Breaker
    I have been thinking about this too. I only earn a tenner an hour for a very responsible job which required a lot of training (was on 9 ish until my first pay rise in 4 years this year). Once MW goes up then I may as well give up and do a less stressy job as I can't see my wage differential being maintained.
    "'Cause it's a bittersweet symphony, this life
    Try to make ends meet
    You're a slave to money then you die"
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