Today sees the lowest paid workers in the country get a small pay rise of around 2.5%. The minimum wage for workers over the age of 21 has risen from £5.93 to £6.08. For a 40 hour working week that’s an extra £312.00 a year or £6.00 a week, which to be frank doesn’t sound like a lot – that’s barely two pints of beer in most pubs today.
I don’t know how many eBay sellers employ workers on the minimum wage but doubtless some will be giving the pay rise in this months pay. What’s more interesting is what happens to your workers who you pay more than the minimum wage.
There are different levels of National Minimum Wage, depending on your age and whether you are an apprentice. The rates from 1st October 2011 are:
- £6.08 – the main rate for workers aged 21 and over
- £4.98 – the 18-20 rate
- £3.68 – the 16-17 rate for workers above school leaving age but under 18
- £2.60 – the apprentice rate, for apprentices under 19 or 19 or over and in the first year of their apprenticeship
As the minimum wage increases will you also be giving a pay rise to your workers who earn more than the minimum? 15p an hour for those earning the minimum might not impact you too much, but if you want to reward your best or long term employees by increasing their wages as well then the costs could start adding up. The alternative is a shrinking of the gap between workers who have earned a pay rise and those still on the minimum wage.
So what is a fair wage for your employees in your eBay business? Do you pay the minimum wage or do your employees already earn more than this. Have you considered giving those earning more than the minimum wage a pay rise as well?