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It is estimated that one in eight workers in Northern Ireland will be affected.
A minimum wage hike will mean higher pay for low-wage workers, but businesses have warned of a “perfect storm” of cost pressures.
It is estimated that one in eight workers in Northern Ireland will be affected.
Prices will range from £10.42 to £11.44 per hour.
Michael Stewart, director of Common Market Solicitors, said: “Everyone is entitled to a fair wage and most employers support raising the minimum wage, but they must pay these costs. It comes with a warning.”
“For a small company like ours, with 10 staff, this equates to an extra £23,000 a year. For a larger company, this can be multiplied by a large sum of money that has to be paid in one way or another. It will be the amount.”
Michael Stewart says rising prices due to rising wages will create a ‘perfect storm’ for the hospitality industry
He said high energy costs, price hikes from brewers and suppliers, value-added tax (VAT) and wage increases were creating a “perfect storm” for the hospitality industry.
“You have to absorb or pass on that, which is becoming more difficult with rising costs, and that means higher prices for customers in all its forms.”
“It brings huge benefits to the economy.”
Dr Lisa Wilson, from the Nevin Institute of Economic Research, said: “This is a huge boon for the economy, particularly in Northern Ireland where we know that low wages are a problem.”
“This has had a huge impact on the proportion of workers classified as low-wage, reducing our labor market from around 20% to around 12% of workers classified as low-wage. “Having a beneficial impact on labor” markets. “
The impact will be particularly felt on low-wage industries such as hospitality, social care and childcare.
National minimum wage changes
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The national minimum wage applies to young employees between the ages of 16 and 20 who are leaving school.
From April 1, the national minimum wage will apply to young employees aged 16 to 20 who are leaving school.
If you are 16 or 17 years old, the national minimum wage is between £5.28 and £6.40 an hour.
If you are 18, 19 or 20 years old, the national minimum wage will be between £7.49 and £8.60.
pass costs on to customers
The change would also affect workers who are paid above the minimum wage if their employer commits to maintaining a pay gap above the minimum wage.
Michael said: “This is a really big issue. At a time when the minimum wage was £10.42, venues that were paying their staff £12 an hour now find themselves having to make big decisions about whether they can sustain that difference. “There is,” he said.
“We need good staff, we want to pay them, we’re going to pay them, but we have to pay them somehow, and that’s probably going to be passed on to the customers. Let’s go.”
