This is something I genuinely believe and why I think the National Living Wage is a great step forward for the UK economy.The new £7.20-an-hour wage came into force on 1 April for workers over the age of 25, which is a 50p-an-hour increase on the National Minimum Wage of £6.70 per hour, which workers aged 21-24 are entitled to receive. When business owners complain about this sort of minimum wage legislation they tend to couch their concerns in terms of the numbers of jobs that will be lost. But, what they really mean is that their profits are going to be squeezed, or that they are about to be found out, and that forcing them to pay decent money will collapse their financial model. In the latter case they have been making a loss, and the only reason they have managed to keep their accounts in the black is because they’ve been paying workers under the odds. Be under no illusion these types of businesses stay solvent on the misery of their workers. Be you a business owner or an employee the primary reason for going to work is to be able to earn enough money to live a reasonably comfortable life. And if a company is only able to stay afloat by paying less than this amount, then it shouldn’t be in business, because such an operation is being subsidised by its workforce, who are effectively being paid for less than 100 per cent of their labour. You could argue such workers are part-time slaves.
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With the changes now in place, here are four ways to navigate the Living Wage and auto-enrolment.
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