The National Hair & Beauty Federation (NHBF) is warning hair salons, barbershops and beauty salons that the planned increase to the National Minimum Wage and National Living Wage (NMW/NLW) will still be going ahead on 1 April.
Hilary Hall, NHBF chief executive, said “We understand that businesses and individuals are under financial pressures that no-one has ever experienced before. The timing of the rises for NMW/NLW is far from ideal in the current circumstances”
“But at least they will give a small increase to support stylists, barbers and beauty therapists at this difficult time. Most of them are receiving 80% of their wages so they will be struggling financially. However, We will be asking the Low Pay Commission to consider the timing and size of future rate rises depending on how the economy responds once the coronavirus situation has ended.”
The Government says that the NMW/NLW increases will ensure wages continue to rise for the lowest paid workers. They also said the package of measures to support businesses and workers announced over the past fortnight will protect jobs. The NHBF received confirmation that:
- Employees are entitled to minimum wages (NMW/NLW) when they are working
- Furloughed employees are not working and so are not eligible for minimum wages (NMW/NLW) during this time.
- The scheme will make up 80% of wages for all employees, including those on the NMW. This amount could be less than the NMW.
- While on furlough, employees’ wages will be subject to the usual income tax and National Insurance.
- Employers can claim for employer National Insurance Contributions and automatic enrolment employer pension contributions (unless the employee has opted out)
- Employers cannot claim for employer National Insurance or pension contributions on any amounts they may choose to pay over the 80% provided by the government.
- For full time and part time salaried employees, the employee’s actual salary before tax, as of 28 February should be used to calculate the 80%. Fees, commission and bonuses cannot be included.
For the latest information to support businesses and employees during the Coronavirus pandemic visit the NHBF website www.nhbf.co.uk/coronavirus and Members area.