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National Living Wage affects charities

According to research carried out by XpertHR, charities across the nation will spend around £10 million to raise their current staff wages to the national living wage and maintain pay differentials. 

The research was conducted on 72,000 employees across 148 charities after the Living Wage Foundation announced that the living wage will increase to £8.25 per hour nationwide and £9.40 per hour in London, from next April. 

The change will affect small employers, with almost 17% of the workforce likely to be affected in comparison, with just 4% of staff in larger organisations. The private and not for profit sectors suggest that around 8% of their workforce will need a pay rise come next April.  

On average in the distribution sector, the pay increase will be 2% which works out to be £191 per employee, costing the industry £300,000. 

 

SOURCE: http://www.personneltoday.com/hr/national-living-wage-charities-10m/