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New online tool designed to increase wages of low paid workers

Posted: 9th April 2015   In: Individual Employment

The government plans to introduce a new online tool designed to increase pay transparency and lead to wage increases for the less well off.

Ministers say the National Minimum Wage Accelerator will give businesses and employees “unprecedented” clarity around pay levels by making it easier to find out how much people are paid in different occupations, sectors and regions across the UK.

The tool will be available online and will also provide employees with factual data that will enable them to discuss their pay with their employers.

Government figures show that 25% of workers receiving the National Minimum Wage are not working in low pay sectors. Ministers say this suggests that employers in these sectors may be able to raise wages without damaging their business.

Business Secretary Vince Cable said: “We know there is a persistent problem with low pay in some sectors of the economy, and areas of the UK. The minimum wage system is necessary and right, but is a minimum by definition.

“By making it easier to compare salaries we can encourage businesses to consider whether they can increase levels of pay, or work with their employees to provide a path out of low pay.

“Employees will be able to compare their wages with others in their sector and region to determine whether they are on an appropriate rate for their current role. They will also be able to compare their wages with those in pay bands above their own, in different sectors to see what opportunities are available to increase their wages.”

We shall keep clients informed of developments.

Please contact Robert Bedford if you would like information or advice about employment law issues.