Government to increase pay transparency
25 March 2015
Plans have been announced to launch on online tool with information made available through the National Minimum Wage Accelerator, giving businesses and individuals unprecedented clarity around pay levels.
Business Secretary Vince Cable has announced plans to launch an online tool that will make it easier to find out how much people are paid in different occupations, sectors and regions across the UK. The aim is that the increased transparency will see the wages of people on low pay increase.
The data will display information about pay in full-time and part-time roles across every level in every sector. Users will be able to see general pay trends across the UK, as well as being equipped with factual data that will enable them to discuss their pay with their own employers.
Around 5 million workers across the UK are paid in the bottom 20% of wages; until this data is available, people may be unaware that they fall into this category. Some 25% of workers who receive the National Minimum Wage are not working in low-paying sectors, suggesting that many of their employers may be able to raise wages without damage to their business.
Employees will be able to compare their wages with others in their sector and region to determine whether they are on an appropriate rate for their current role. They will also be able to compare their wages with those in pay bands above their own, in different sectors to see what opportunities are available to increase their wages.