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Half of all Employers Expect to be Affected by the New National Living Wage


Over half of all employers (54%) say the new National Living Wage (NLW) will have an effect on their wage bill, with three in ten of those organisations that will be affected by the new higher wage floor planning to raise productivity in response. This is according to a new survey published today by the CIPD, the professional body for HR and people development, and the Resolution Foundation (RF).

The survey of 1,037 employers, which launches a joint CIPD/RF investigation into how firms in low-paying sectors will adapt to the National Living Wage, shows that the higher wage floor will have its greatest impact in retail (79%) and hospitality (77%), where over three-quarters of employers say their wage bill will be affected. In addition, more than two-thirds of employers in the healthcare sector (68%) will be affected. Overall, almost one in five employers (18%) say they will be affected to a large extent by the NLW, a figure that rises to around a third in retail (33%) and hospitality (32%).