The government have provided an ill-timed announcement of another large minimum wage increase, effective from 1 April.
To see another large increase in the minimum wage during the pandemic, at a time when we are experiencing such a significant downturn in custom and while other aspects of the traffic light compliance thrust new costs on our sector is extremely difficult news. It is incongruous to add additional costs at a time when so many of our businesses are struggling to survive.
We submitted our feedback on the minimum wage and our advice that an increase at this time would have a catastrophic effect, highlighting the need to see pragmatic solutions progressed by the government to help our economy back to health. As an Association, we have a significant role to play to guide the hospitality industry through this continuing period of uncertainty, however, we need the government to work with us transparently and collaboratively on decisions like this that have a direct impact on business bottom lines.
The new minimum wage from 1 April 2022 is $21.20. The starting-out and training minimum wage will also increase from $16 to $16.96 per hour.