National Living Wage increases and Pret A Manger pay rises

The National Living Wage will rise to £10.42 from April 2023, an increase of 9.7%.  This is the largest increase to the NLW since its introduction in 2016 and reflects the steep rise in inflation and cost-of-living crisis.

Food and beverage business, Pret A Manger, are going even further!  It has announced that its 7,870 UK shop employees will receive a pay rise in April, to support them with the rising cost of living.  This will be the third pay increase employees have received in 12 months.

From 1 April, team members, baristas and shop managers will receive an additional 3% pay increase on top of the 5% they gained in December 2022.  Team members’ pay will increase from between £10.30 and £11.55 per hour, to between £10.60 and £11.90 per hour, depending on location, or between £11.85 and £13.15 per hour with the mystery shopper bonus, which sees eligible staff receiving an extra £1.25 per hour for that week’s pay if they score highly.

Barista pay has been increased from between £10.85 and £12.50 per hour to between £11.20 and £12.85 depending on location and experience, or between £12.45 and £14.10 per hour with the mystery shopper bonus.

This increase means that average base pay was increased by 19% in the year to April, while average entry level pay increased by 15% year-on-year to above £12, which is higher than the UK national living wage and inflation rate.

Given the rising NLW, employers may find they employ more people on the cusp of NLW rates and therefore may need to pay greater attention to NLW compliance.   Also since the Pret pay increases were so well publicised there is a risk that employees’ expectations generally, particularly in similar sector businesses will be that much higher.  If you need any help with understanding the NLW and changes please contact harriet.driscoll@smb.london.