Low Pay Commission consider the NMW compliance gap
28 October 2016
28 October 2016
The statistics are based on the data taken from the provisional results of Annual Survey of Hours and Earnings (ASHE).
In their recent blog, the Low Pay Commission (LPC) has considered the reasons for the ONS results which show that at least 300,000 or 19 per cent of workers covered by the National Living Wage were paid below it in April 2016 which is approximately 1.3 per cent of the workforce aged 25 and over as a whole. This suggests an increase on previous year’s results which were 160,000 or 15 per cent of 25+ workers covered by the NMW paid below in the previous year - approximately 0.7 per cent of the workforce as a whole.
“Measuring different things
…figures relate to underpayment at the introduction of the NLW, whereas those in April 2015 related to the mid-year point of the predecessor minimum wage. Previous research has found that non-compliance is higher the nearer you are to a change in pay, as employers take time to respond to the new rate…”
The blog can be read in full via the minimum wage blog page of the LPC on GOV.UK.