4 January 2016

The government has launched a publicity drive and awareness-raising campaign to promote the arrival of the mandatory National Living Wage from this April, and the NHBF is urging salon owners to make sure their businesses are ready for this new wage rate.

The National Living Wage will be an extension of the National Minimum Wage for older employees. It means any employee aged 25 or over must be paid at least £7.20 an hour from 1 April. This is likely to rise to more than £9 an hour by 2020.

The government has already made it clear that the launch of the new wage will be accompanied by a tough fines and “naming and shaming” enforcement regime for any businesses caught failing to pay staff their legal due.

The NHBF is therefore urging salons to use the time between now and April to check their payroll processes are ready for this change. It is also advising salons to look closely at how this extra cost is likely to affect their business and things they can do that may help, for example, telling your clients about the National Living Wage increases so they understand why your prices will be going up in April 2016, or reviewing your costs and negotiating reduction wherever possible.

The government campaign is emphasising four steps employers need to take:

  • Know the rate (in other words £7.20 an hour for employees aged 25 or over)

  • Check which staff will be eligible

  • Update your payroll before 1 April 2016

  • Tell staff about any changes to their pay 

It has also set up a dedicated website, livingwage.gov.uk and a hashtag, #NationalLivingWage

NHBF president Paul Curry said:

Salons need to recognise the new National Living Wage will not be a ‘nice to have’. It will be a compulsory, legal responsibility - just like the National Minimum Wage. Salons therefore need to be using the next three months wisely to make sure they are ready for this change.”

NHBF chief executive Hilary Hall added: “The fact HM Revenue & Customs last year ran a campaign around the National Minimum Wage specifically targeting hairdressing, barbering and beauty means it is likely our industry will be in the spotlight when the new National Living Wage comes in.”