Living Wage 2020... is it right?
- Thread starter Diagro
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Soldato
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Isn't that the same attitude as her employer though? I'm sure the business wouldn't undertake more work for the same profit margin so why should the employee?
It should have never happened. To have somebody turn down a £3k payrise cause with her benefits she would get nothing is madness. If she hadnt already been on the equivalent take home salary of £22k of course she would have accepted the promotion.
Plus very short sighted of her, as basically she is saying she is quite happy to remain junior her whole life. And so what if the promotion didnt give her any more money immediately? She was banking on her benefits not changing ever. Now they have, she would be better off with the promotion. Also what happened to people bettering themselves and moving up the career ladder?
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Soldato
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I agree but the way you wrote it was if the problem was her attitude and not the current situation with benefit payments.
True. But ive added now.
Still shortsighted of her but I agree the benefits system created a situation where until you get to a certain wage then you dont have any more money. All that changes is who pays you.
It's closer to 8%...
I'm not disputing that minimum wage shouldn't rise. It should, maybe at 1.5-2x inflation or average earnings? But, particularly at professional careers such as nursing and teaching they are not only devaluing a persons worth but whole industries as the government are the primary employers and set national wage scales at just a 1% rise. This is going to become a very big problem over the next few years. What are they saying for people looking at coming into the industry in future?
it has happened before both here and in other countries....
minimum wage rises don't have a very big effect on inflation
you've got no reason to assume otherwise other than your own ignorance and flawed assumptions
I'm getting a bit confused.
How are they devaluing a person's worth? They are increasing minimum wage. Effectively saying you are worth more.
The scare mongering about it being pushed all to the consumer is a bit far fetched also. Yes maybe prices will increase a little, but that is just inflation at play. Didn't the Government announce a cut to corporation to tax, to help negate the rise in MW on businesses?
Overall it's clever play by the Government. Rise in MW means people will be earning and spending more. So the people are happy. Cut in corporation tax helps businesses so they are happy, as well as people buying more of their goods/ services. Ultimately the Government are happier because it means more tax.
Smiles all round.
The problem with this though is the cost saving initiatives across the NHS and public sector have meant a large scale reduction in managerial roles and therefore less of a chance for someone to progress.
Taking my personal circumstances as a example, when I started on the service desk the ratio of senior analysts was 2:1, now after almost 4 years it's 4:1.
I've applied for the last several promotions and have more than met management's expectations but haven't quite scored highly enough on the day to get the job. This hasn't stopped them from giving me most of the responsibilities and training a senior would receive and so I essentially already have the promotion just none of the financial rewards that come with it.
As I work for a separate NHS employer I can't apply for any of the equivalent jobs or jobs I'm qualified for without starting on the first rung at the trust (the trusts are currently only recruiting from within the trust except for jobs that pay little more than the minimum wage).
The paragraph above indicates that my situation isn't anecdotal, I'm personally doing something about it but only by saddling myself with a large amount of debt as I'm a third of the way through an Open Uni degree.
You can partly thank Labour for that. Inflating public sector employment to keep unemployment down. NHS was a prime example of being over staffed at managerial level, if private businesses operated at those kind of levels they would sink themselves pretty quickly.
Sorry what is it you do exactly?
Do you think in 5 years time you will be on ~5% more than what you are now?
Not really. Until you earn £24k people on benefits will see no extra money from NMW, just business will have to bear the cost.
That plus pressure to increase normal wages will mean higher costs.
End result normal people dont have any extra money to spend and people on NVM with benefits are worse off so they dont feel happy.
1% cut per year to corporation tax does not come anywhere close to offsetting the cost lol. We have an annual wages bill of £3m. Some of those will be going up by 8% due to NVM increases, others by between 4% and 10% to keep the "gap". So probably an overall cost of say £180k per annum. We will be saving about £4k in corporation tax. In fact, just looking at the employees on MW, would cost us several times this saving alone.
But overall i agree with businesses should pay a decent wage rather than people propped up by add on benefits.
I'm a service desk analyst, so first and a bit of second line support for National NHS IT services and first line support for some of the trusts.
Out of core business hours we're also incident management for any high severity national IT service outages. I also work on quality assurance for the service desk which involves producing reports and analysing performance of individuals and our services.
Unless I get a promotion then no I won't receive a 5% payrise in 5 year's time, it doesn't help that our dedicated second and third line teams are halfway across the country.
Out of core business hours we're also incident management for any high severity national IT service outages. I also work on quality assurance for the service desk which involves producing reports and analysing performance of individuals and our services.
Unless I get a promotion then no I won't receive a 5% payrise in 5 year's time, it doesn't help that our dedicated second and third line teams are halfway across the country.
The NHS spends much less on management-level employees as a percentage of expenditure than comparable private health firms.
Associate
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My current role is the £24K - £29K. If I were to be promoted up to the next level that will then go from £30k - £39K but that assumes that in a few years time, either they get more funding to increase the size of the team or 1 of the 6 in the role above leaves.
Only to the people on NMW, you guys are saying the people above this now don't automatically deserve a commensurate rise, it's those you are saying you aren't worth anymore, ie: devaluing their worth
So where is the extra income for the business going to come from?
Make less profit you say? Then they pay less corporation tax, less income for the government.
And what do you think drives inflation? Rising commodity and wage costs....
Lol, no...not even a drop in the ocean
God, it must be awesome to live with such a simplistic view of life
God, it must be awesome to live with such a simplistic view of life
Works well for me so far. Decent life, decent job, decent wage.
If I got a problem or want something I do something about it. Not rant on an Internet forum at how unfair life is.
Might favourite this topic for 5 years time. When all the scaremongering has been proven wrong.
Be interesting to see where others are in 5 years time and if they are actually as skilled as they think they are, or still just moaning at how little they are paid and how unfair life is.
So in 5 years one person above you has to leave. Not exactly impossible is it? You could always move to another company as well I take it?
Basically are you worried that your salary will only increase by ~5% over the next 5 years? Or that people on MW will be that bit closer to you? Or are you confident that in the next 5 years you will be on more then 5% more than what you are now?
Associate
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For me I do see opportunity for me to move up, else like you say move out and look elsewhere so that's not too much of an issue.
I'd say the first two points are my main concern. Capping at 1% a year as well as moving MW closer to me doesn't sound attractive to me. I'm not too sure that you understand that, yes although I will probably get more then 1% every year, but the "box" that I'm in is only moving at 1% and I'm just moving up inside it.
But if you are confident that your skill/ ability can take you beyond your current band/ role, or to another company if needs must, then I would not let it concern you in the slightest.
Also 5 years is a hell of a long time, much will change. Hell I started work 6 years ago. From where I was then to now is chalk and cheese.
I started on 9k when on my placement year. That actually worked out to be less than minimum wage. With my degree (BSc business computing) my first wage was 16k. 5 years later I'm on 2.5x that which I think is pretty good.
If you put the effort in and show you want to learn then you will be rewarded - Obviously the right company helps or you could be stuck in the same job earning the same (or similar) money for years. If you don't like the job, or wage then its not hard to add a CV to a few websites and create a linked in profile. I managed to find a job within a few weeks twice during the recession and i'm not exactly the sharpest tool in the shed!