U.K.: Government to Increase Pay Transparency

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By Rick Vollmar

March 24—It will be easier to find out how much people are paid in different occupations, sectors and regions across the U.K. using a new online tool announced by Business Secretary Vince Cable March 20. The National Minimum Wage Accelerator will give businesses and individuals “unprecedented clarity around pay levels,” according to a Department for Business, Innovation and Skills press release.

The Minimum Wage Accelerator will allow employers and employees to see general pay trends across the U.K. Employees will be able to compare their wages with those of others in their sector and region to determine whether they are being paid appropriately.

“We know there is a persistent problem with low pay in some sectors of the economy and areas of the U.K.,” Cable said in the release. “The minimum wage system is necessary and right, but is a minimum by definition. Good employers want to be responsible and reward their staff as much as they can afford in order to attract the best people and have a happy, motivated and productive workforce. By making it easier to compare salaries we can encourage businesses to consider whether they can increase levels of pay or work with their employees to provide a path out of low pay.”

To contact the reporter on this story: Rick Vollmar at rvollmar@bna.com

The Department for Business, Innovation and Skills press release is available at https://www.gov.uk/government/news/government-to-increase-pay-transparency.

For more information on British HR law and regulation, see the U.K. primer.