National Living Wage

housebuyer143

stu12345_2 said:

I think the old method was government worked out what was 60% of the median wage in the UK now they are using 66% eg 2/3 rds of the median wage .I think the UK median weekly wage is around £487 to £500.
don't think of it in % increase but more in pounds n pence.
the trouble I see is employers paying say £11.30 an hour will have to raise their wages to £12.32 to keep the same gap.eg my employer.cos if they don't.i will be looking for another job as the incentive will be gone staying with current employer.

This is it isn't it. It sows resentment when people who got more than minimum wage don't get a 10% increase and see everyone else catching them up. Not all employers can afford a 10% rise in staff costs. 

TimeLord1

As an hourly rate the percentage isn't great and if small businesses can't afford it, unless business rates go down substantially, then people will be made redundant or expected to do more or leave to better employment. I think until it starts next year + inflation over that time, if it increases which it usually does over the festive season. We will see later when the statement is over. 

Grumpy_chap

stu12345_2 said:

I think the old method was government worked out what was 60% of the median wage in the UK now they are using 66% eg 2/3 rds of the median wage .I think the UK median weekly wage is around £487 to £500.

The new Living Wage £11.44 per hour.
For an employee on 40 hour week and 52 weeks per year, that works out to £23.8k per year.
If that is 2/3 median wage, it would make the median wage £35.7k per year.
Is the median wage truly that high?

stu12345_2

no.dont think of it in %>think of it in pounds or pence. the lowest paid workers are still struggling. let's say you have a factory making aero engines.the majority of staff will be semi skilled.only the factory cleaners will be on min wage.

so a £1 rise won't do much damage to your wage bills. but if the rest of staff eg the semi skilled get  only say £1 rise ,it will be only say a 3 to 4% rise. an expected rise.
they aren't going to get a 10% rise  if they are on £35 to £40000 a year.
 employers wont have to suddenly increase their product prices. cos there are so many other staff in the factory not going up by 10% cos they are already on a decent wage 
the only places I think it will affect are maybe care homes where alot of staff are on min wage. I guess the fees for the old folk will go up. guess their homes will be sold anyway to cover it.

stu12345_2

Grumpy_chap said:

stu12345_2 said:

I think the old method was government worked out what was 60% of the median wage in the UK now they are using 66% eg 2/3 rds of the median wage .I think the UK median weekly wage is around £487 to £500.

The new Living Wage £11.44 per hour.
For an employee on 40 hour week and 52 weeks per year, that works out to £23.8k per year.
If that is 2/3 median wage, it would make the median wage £35.7k per year.
Is the median wage truly that high?

yes as there are decent wages for car mechanics HGV drivers plumbers semi skilled factory workers etc.

MattMattMattUK

Grumpy_chap said:

stu12345_2 said:

I think the old method was government worked out what was 60% of the median wage in the UK now they are using 66% eg 2/3 rds of the median wage .I think the UK median weekly wage is around £487 to £500.

The new Living Wage £11.44 per hour.
For an employee on 40 hour week and 52 weeks per year, that works out to £23.8k per year.
If that is 2/3 median wage, it would make the median wage £35.7k per year.
Is the median wage truly that high?

I can find two conflicting figures, the first states £35,464 and the second states £38,104, either of which I think could be entirely probable. 

Grumpy_chap

MattMattMattUK said:

Grumpy_chap said:

stu12345_2 said:

I think the old method was government worked out what was 60% of the median wage in the UK now they are using 66% eg 2/3 rds of the median wage .I think the UK median weekly wage is around £487 to £500.

The new Living Wage £11.44 per hour.
For an employee on 40 hour week and 52 weeks per year, that works out to £23.8k per year.
If that is 2/3 median wage, it would make the median wage £35.7k per year.
Is the median wage truly that high?

I can find two conflicting figures, the first states £35,464 and the second states £38,104, either of which I think could be entirely probable. 

The median is certainly higher than I understood it would be.

In fact, the new minimum wage is rather high as well.
Mrs G_C is currently not working and said she'd only go back to work if she could get at least £24k.  Looks like it might become worth her while...

Andy_L

Grumpy_chap said:

stu12345_2 said:

I think the old method was government worked out what was 60% of the median wage in the UK now they are using 66% eg 2/3 rds of the median wage .I think the UK median weekly wage is around £487 to £500.

The new Living Wage £11.44 per hour.
For an employee on 40 hour week and 52 weeks per year, that works out to £23.8k per year.
If that is 2/3 median wage, it would make the median wage £35.7k per year.
Is the median wage truly that high?

"Average weekly earnings for total pay were £661 and for regular pay were £619 in August 2023, showing a steady increase over time"

So £34k or £32k PA

So fairly close. average full time hours are ~37hours vs 40 sd that brings them closer

https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemployeetypes/bulletins/averageweeklyearningsingreatbritain/october2023

sevenhills

housebuyer143 said:

I'm confused how they intend to keep inflation low when they just gave everyone a 10% payrise? Boe will probably raise rates again soon to compensate.
All companies will need to raise prices now to cover the increased staff costs, which surely will only increase inflation 🤔 
I'm not sure what this government is up to tbh. Talk about embedding inflation. 

But it's the money supply that causes inflation, not pay increases. That is just fake news put out by Governments!

Prices outstripped wages from 2020-2023, with wages rising faster for a short time.

So you could argue that the fall in wages in 2022/23 helped lower inflation?

The High Pay Centre’s CEO pay report showed that the average CEO from a FTSE 100 company received a 16% pay rise last year(2022). That is equal to around £500,000, and took average salaries to around £3.9m.

https://www.bbc.co.uk/news/business-67402491

LightFlare

housebuyer143 said:

I'm confused how they intend to keep inflation low when they just gave everyone  some people a 10% payrise? Boe will probably raise rates again soon to compensate.
All companies will need to raise prices now to cover the increased staff costs, which surely will only increase inflation 🤔 
I'm not sure what this government is up to tbh. Talk about embedding inflation. 

fixed it for you - although I still agree with your comments

I didnt even get 5% this year -- they only do it to fudge the figures to justify another decade of public sector pay freezes by claiming that wages are outstripping inflation

all its doing is degrading the gap between low and medium earners and devaluing my experience and qualifications that I have built up over the years. No wonder the public sector is really struggling to keep hold of their most experienced (and arguably valuable) staff