Minimum wage could rise to £8 by 2020

Business owners are used to the steady rise of minimum wage, and it’s set to continue. At their annual conference, the Labour party pledged to increase the national minimum wage for adults to £8 an hour by 2020. At present, national minimum wage is £6.50 for adults, £5.13 for 18-20 year olds, £3.79 for under 18s and £2.73 for apprentices. These figures last increased at the beginning of October 2014.

An additional £1.50 increase in the next five to six years equates to an average of 25-30p a year, larger than this year’s increase of 19p. The National Hairdressers Federation responded to Labour’s pledge with a mix of concern and optimism.

The NHF admits that it’s likely that national minimum wage will rise to £8 by 2020 anyway, so the pledge itself is not necessarily a concern. However, a spokesperson for the NHF said that small businesses often required additional support to help cope with these increases:  ïlong-term above-inflation increases in the wage must be accompanied by increased support for small businesses, both in terms of tax breaks and incentives but also around areas such as compliance and administration of the wage.’ Additional support for apprenticeships in particular is required if managers of smaller spas and salons are to continue to grow and flourish despite these cost pressures.

Keeping a close eye on your salon business’s finances is even more important in the months after a minimum wage rise. Use salon management software’s financial report functionality to track your expenses and income. New to salon management software? Call i-Salon to learn more.