Business
Farm worker pay must rise to keep in line with National Living Wage 3.3% pay increase needed to
keep in line with living wage • Recommendation aimed at English farms • Salary rise needed to match other increases • Employee pension contributions risen
ployers expected. But he said it refl ected the fact that the Nation- al Living Wage rose by 4.9% in April 2019 to £8.21/hr.
F
arm workers in England need a 3.3% pay rise in 2019/20 to keep in line with
above-infl ation increases in the National Living Wage and agri-
cultural wage rates in the rest of the UK.
The recommendation by Strutt & Parker is aimed at em- ployers in England, who are no longer covered by rates set down by the Agricultural Wages Board. Minimum wage rates are still set by offi cial pay review bodies for farmworkers in North- ern Ireland, Scotland and Wales.
Each year, Strutt & Parker seeks to come up with guidance for its cli- ents based on analysis of key market indicators. This includes what has been agreed in other parts of the UK, the rate of infl ation and the outcome of public sector pay
awards.
George Chichester, director in the farming department of Strutt & Parker, said: “This is the sec- ond year in a row where, after much deliberation, we have rec- ommended a pay increase in ex- cess of the rate of infl ation.”
Employers may want to take into consideration other non- pay benefi ts, says George Chichester
44 MIDLAND FARMER • JANUARY 2020
Higher than expected Mr Chichester acknowledged that the recommended increase may be higher than many em-
A standard agricultural work- er (Grade 2 Equivalent) over 25-years-old must not be paid less than this hourly rate, said Mr Chichester.
“
Wage levels for workers are likely to increase again in the spring
Pay bodies in Wales, Northern
Ireland and Scotland agreed pay increases for Craftsman Grade workers (Grade 4 Equivalent) of between 2.2% and 4.8%, with ef- fect from 1 April 2019. The high- est rate agreed was in Scotland where the minimum craftsman rate is £9.46/hr. “Taking both of these points into consideration, we are suggesting that employ- ers in England consider a 3.3% increase to the craftsman rate to bring it into line with wage rates in Scotland,” said Mr Chichester. “While employers may feel
this is challenging, at a time when profi tability is being squeezed, it feels unavoidable if the premium for Craftsman Grade workers is not to be eroded still further,” he explained.
“Employers should also be
aware that given the National Living Wage is expected to rise again in April 2020 to £8.67/hr, wage levels for standard and ba- sic workers are likely to need to increase again in the spring.” When reviewing wages, em- ployers may want to take into con- sideration other non-pay benefi ts which are part of a package, said Mr
Chichester.These include ac- commodation and opportunities for career progression. “While it may be appropriate for lower grade workers to receive an above-infl ationary award, this may not be appropriate for em- ployees who are already on at- tractive packages,” he said. Despite wage increases, many farm workers have seen little in- crease – or even a decline – in their take-home pay in recent years. This is due to increases in employees’ pension contributions through auto-enrolment, which rose to 5% in April 2019.
Previously recommended pay rises
2019-20 3.3% 2018-19 3.% 2017-18 1.4% 2016-17 1% 2015-16 1% [source: Strutt & Parker]
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