Marks & Spencer has announced a 5% pay rise for approximately 50,000 retail employees, effective from April 1. The company is set to invest \u00a395 million in this pay increase, marking a significant move as the national living wage rises in the UK. <\/p>\n\n\n\n
The hourly rate for in-store customer assistants will increase from \u00a312 to \u00a312.60<\/strong>, while those working in London will see their pay rise from \u00a313.15 to \u00a313.85<\/strong>. For team support managers, the hourly rate will increase from \u00a313.05 to \u00a313.65<\/strong>, with London-based managers receiving an increase from \u00a314.20 to \u00a314.90<\/strong>.<\/p>\n\n\n\n
Marks & Spencer\u2019s chief executive, Stuart Machin<\/a>, emphasised that despite facing significant cost pressures due to the government\u2019s recent budget changes, the company remains committed to investing in its employees. <\/p>\n\n\n\n
\nFollowing the Government\u2019s recent increases in tax and national insurance contributions, it\u2019s no secret that M&S and indeed the entire retail sector has some significant cost headwinds to face into in the new financial year.<\/em><\/p>\n<\/blockquote>\n\n\n\n
This reflects the challenges the company faces, especially with a \u00a3120 million<\/strong> additional cost burden this year due to the rise in the national living wage<\/strong> and national insurance contributions.<\/p>\n\n\n\n
Impact of Government Changes<\/h2>\n\n\n\n
Machin acknowledged that the business is facing significant cost pressures<\/strong>, particularly from an increase in national insurance contributions and the national minimum wage rise, which will cost M&S an additional \u00a3120 million. <\/p>\n\n\n\n
The company expects \u00a360 million<\/strong> of this to come from the rise in national insurance contributions and another \u00a360 million from the 6.7% increase in the national minimum wage. However, M&S has committed to shielding its customers from these rising costs by avoiding price increases.<\/p>\n\n\n\n
Industry-Wide Trend<\/h2>\n\n\n\n
M&S\u2019s move follows similar actions by other retailers like Sainsbury\u2019s and Lidl<\/a>, which have also raised wages for their retail workers. These pay hikes are seen as a response to both the increasing cost of living and the government’s wage adjustments. <\/p>\n\n\n\n