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?
13 Responses
We employ an apprentice who’s been with us now for a couple of months in addition to part-time staff. We pay the apprentice more than the over 21 national minimum wage.
I don’t know anyone can be expected to live on £2.60 an hour, whatever their age. Could you?
And I don’t see how that rate of pay will ever encourage more people into apprenticeships.
Min wage is a joke, pay peanuts get monkeys.
We pay our warehouse staff 15k per yr with an extra 1.5k in bonus if they hit their targets (KPI’S) in our warehouse standards program which covers things such as standard of work (packing picking etc) general standards of the warehouse housekeeping etc plus a few other things – we monitor such things as mispicks – orders damaged due to poor packing (not up to our set standards), it seems to work for us.
Warehouse manager earns 20k plus 1.5k in bonus a yr and customer service manager the same as warehouse manager.
We keep our staff and never have an issue with timekeeping or attendance.
And when we need their help say when we re fitted the warehouse and loads of stock and racking had to be moved everyone was more than happy to help during the evenings and weekends.
We even do things like there is a nintendo wii in the staff room and free tea coffee etc.
Fridge and microwave etc
30 days holiday a year
Treat your staff well and they will look after you.
I strongly belive in this and it seems to work most of the time.
I have worked for too many companies who dont care – they must spend a fortune of recritment and training all the time.
The minimum wage is not a joke – it’s a minimum wage.
I am very pleased that you recognise the skills required to deliver your operation and that you pay your staff more.
There are lots who might pay their staff less but for the minimum wage.
In my experience, the people I have employed in the past have all been useless. I choose now not to employ people – its just not worth it. people in this country have no work ethic. They expect to get paid and have no care for the job they do.
Glad to see there are some decent ebay traders not being supported by working tax credits but employing staff
In the USA there is a federal minimum wage of $7.25 (today’s exchange £4.71) but nobody can live on that, although many do.
Workers aged under 20 for the first 90 days of employment must be paid a minimum of $4.25(£2.76) an hour. Some unscrupulous employers routinely fire them before day 90 and get a new batch. I have read if you keep around 3% of the pool after the 90 day rate hike for a month or so you will not be troubled by the Labor Dept.
There is no legal requirement for medical benefits, paid vacations, sick leave or holidays (federal or otherwise) in the USA. Large corporations routinely fire low level employees who take time off when sick.
Our lowest paid worker on the ranch makes $15 plus 2 weeks paid vacation, ditto sick leave and we pay the whole health insurance premium. We have very little turnover, two that I can remember in the last 5 years, both fired for cause.
Our retail business is too small to employ a full timer, we do it ourselves but have a part-timer called when needed and we pay her $8 an hour. She is classified as casual labor, no benefits. We don’t break down the hours, if she work 3 hours and 10 minutes she gets paid for 4. We have had no turnover.