AES International’s Post

Just a reminder: the current calculation of a standard decent standard of living wage in the UK is currently sitting at £29,541 per annum. This is before tax and does not allow for savings aside from standard pension contributions which are taken off wages. Anything below this is could cause "wage drift", which is when financial worries creep into people's minds at work and causes them to drift in and out of focus. I'm seeing a lot of jobs advertised far below that threshold. When employees are desperate (as they are in this difficult job market), they will flock to lower pay, but it's important to remember that it will only be temporary. People will only stay at that wage as long as the job market remains advantageous for employers. Plus, wage drift may affect job performance enough to be noticeable within the business. When hiring, I suggest you stay around the above figure or slightly higher if you can afford it. If not, you may end up spending far more recruiting for the same position continuously or losing more from drop in productivity.

The UK has seen huge debate over the past few years on the topic of salaries and the raising cost of living. Doctors, rail workers, teachers and more have demonstrated and gone on strike in an effort to negotiate their current and future salaries. But this issue spreads much further than the public sector, wages in the private sector have stagnated and average bills have risen much more than expected. The graphic below shows that even on an average salary, the disposable income left after paying the essential bills can be non-existent. This doesn't even account for any additional bills like your car, insurance, savings, pension, finance repayments, child care etc. So, pushing for higher salaries isn't just about affording that lavish lifestyle, to some it could just be about having stability in your finances and easing the worry each month. Do you think salaries in the UK are growing fast enough?

The fact of the matter is when you work 50 years and pay into the SS system for that long you expect to get everything you're entitled to without interruption. Another fact is that higher earners are subsidizing the very low & lower wage earners which is unfair. I found the table the government uses for Social Security monthly payments is skewed to accomplish this (realized this is what is happening when I compared my wife's years of work & salary vs. mine which was basically double the years and at least double the salary). I guess it's fruitless to ever get this changed to a much fairer system? #ssrunningoutofmoney

Big changes in the UK budget are set to impact workers, and we’d love to hear what you think: - Minimum Wage Hike – Great for boosting incomes, but is it enough to keep up with inflation? Will it really make a difference in day-to-day spending? - Employer Costs Rising – With a bump in National Insurance for employers, will we see any effect on job opportunities or salary growth? Some say this could lead to fewer hires or slower pay rises. - Homebuyer Challenge – The lower stamp duty threshold means first-time buyers may need to save more to make their homeownership dreams a reality. Do you think these changes are enough to make a real impact? Or will the ripple effects hit harder than expected? Let’s discuss! #UKBudget #MinimumWage #JobMarket #HomeBuying

Average UK wage rises by just £16 since 2010. More workers expect to switch jobs. Increase in protectionism slows global economy.Markets, insolvencies, manufacturing, tax, politics & more business news that we thought would interest our members. https://lnkd.in/eBjJdE7x #businessNews #creditmanagement #finance #smallbusiness #latepayment #insolvencies #economy

Average UK wage rises by just £16 since 2010. More workers expect to switch jobs. Increase in protectionism slows global economy.Markets, insolvencies, manufacturing, tax, politics & more business news that we thought would interest our members. https://lnkd.in/eTNv48BK #businessNews #creditmanagement #finance #smallbusiness #latepayment #insolvencies #economy

When you read your Telegraph and Mail today, remember this….I was one of the many employers who the then Shadow Leader and Chancellor of the exchequer (now in government)consulted on the new deal for workers. The sick pay from day 1 and restrictions on zero hours contracts were very much promoted by me. The CBI welcomes this package as does the Living Wage Foundation. This is a very welcome move to help workers to be protected against employers who seek to exploit them. I am disappointed that the Federation of Small Businesses (FSB) (who have never consulted me) have chosen to be aggressively negative about these changes. The promotion of good employment practices as shown by the many members of the Greater Manchester Good Employment Charter and the 15000 Living Wage UK employers has a positive impact on productivity. The UK has performed particularly badly relative to comparable economies in terms of productivity growth. It is in the bottom half of the rankings in the OECD, well below France, Germany and the United States; just below the average for the euro area; and slightly ahead of Italy and Spain. From 2010 to 2022, the annual average growth in UK GDP per hour worked was just 0.5%, with little sign of improvement in recent years.

More than 15,000 UK employers have now signed up to pay the “Real” Living Wage. That’s double the number from three years ago. The voluntary rate, set by the Living Wage Foundation, is calculated to include the cost of living. As of writing, it is currently £12 an hour across the UK and £13.15 an hour in London. In contrast, the national living wage set by the government is £11.44 and only applies to workers aged 21 and over. One in nine workers now work for a Living Wage Employer, the foundation said, and 7,500 employers have signed up to the rate since 2021. However, it warned that over 3.7 million workers still earn below this rate, 60% of whom are using foodbanks, 39% regularly skipping meals to save money, and 39% are behind on household bills, according to its research. The LWF also cited research from Cardiff Business School showing that 94% of Living Wage Employers benefited from accreditation, with employers reporting improvements in recruitment, retention and reputation. Would you adopt the “Real” Living Wage? #livingwage #wages #costofliving

So (beyond the Employers Allowance - once that is used up by 5 1/2 staff) a small business where the owner pays themselves a small salary of say £12k and has a couple of additional part time staff also on £12k will see their employer NI bill go up from £1,200 a year to £3,250. - basically an extra £650 a head. And that is before having to pay the higher minimum wage.... or £1,000 a head for anyone on an average wage. Any business that employs a large number of part time staff are going to be horrendously affected. Seriously? Robber Reeves actually thinks this is a budget that will encourage growth? edit: Subsequently understand that employers allowance will protect such as small businesses up to anot 5 1/2 staff on an average wage but plenty of slightly larger ones would be hit badly.