The National Living Wage (NLW) is set to spike by 6.2% come April 2020! That means if you own a hair or beauty salon, expect to pay staff up to £8.72 per hour. Do you know the ins and outs, as well as how your salon can prepare for these changes? We break down all the details to keep you ahead.
The National Living Wage
Over the age of 25? Even if that’s your secret and you tell everyone you’re still 21 (we’ve all done it), you’ll be on the NLW. You and your staff over 25 will need to be paid £8.72 per every working hour from April 2020. But what counts as ‘working hours’, though?
Working hours includes any time spent at the salon when not on break, travelling to treatments booked at client homes, or even any time spent training. However, travelling to and from work doesn’t count (sorry!) and neither does time off due to sickness, holiday or maternity.
The National Minimum Wage
For any employees under the age of 25, the National Minimum Wage (NMW) is also ready to be plumped up. So, even your youngest workers will receive a wage increase. But by how much?
- 21 to 24: £8.20
- 18 to 20: £6.45
- Under 18: £4.55
- Apprentice: £4.15
That’s easy to keep in mind, right? Well, it’s worth knowing that the above apprentice wage is for someone under the age of 19 who is still in the first year of their apprenticeship. That means if they have completed their first year, then they’re entitled to the NMW for their age.
Is anyone exempt?
So, who doesn’t the NLW or NMW apply to in your salon? Well… only people who are self-employed, volunteers or company directors are exempt. That means the wage increase applies to everyone else!
Don’t get caught out! To plan ahead, check your current payroll and pay rates. If you own Salon by Premier Software®, you can also set commission rates and run reports such as staff hours analysis to check productivity and calculate the correct wage to make sure everything’s ready for April.