The rates of the National Living Wage (NLW) and National Minimum Wage (NMW) which will come into force from April 2024 will see some significant increases, especially for younger employees and apprentices.
The rates which will apply from 1 April 2024 are as follows:
These increases could see pressure put on employers across the board to raise pay.
Smaller businesses tend to have tighter budgets making them more susceptible to the impacts of a higher wages as they may not easily be able to absorb the increased costs and may be need to look at making efficiency savings to maintain their profitability. By looking carefully at your operating costs, you may be able to identify areas where costs can be trimmed back. Even minor changes can help maintain a healthier cash flow.
It might be a good time to review your sales pricing policy.
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