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Increase in National Living Wage

Last year it was announced that from April 2018 there is going to be an increase in the National Living Wage. With earnings rising year on year, this could easily become a cause for concern for salon owners and barbers.

The last time the National Living Wage changed was in April 2017, when the hourly rate for staff aged 25+ increased from £7.20 to £7.50. Proposals now suggest that the wages for the same age group should increase to £7.83, which would mean full time workers are £600 a year better off. 

This could have a negative impact on small businesses who will see their outgoings grow without a guaranteed rise in income. Salons may need to consider increasing their prices to cover the cost.

However, it’s not all doom and gloom, as higher wages are likely to motivate staff to do well and could lead to better productivity. This change could also open more job opportunities for those younger than 25, who will appear more accessible and affordable.

Outside of the salon, the rise in wages could also encourage more customers into salon due to the rise in disposable income.

For more information on the impending wage rise and how it will affect you, please visit the NHF’s website here.

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