Boss gives entire company pay rise to cover hike in national insurance
With confirmation that Boris Johnson will be raising National Insurance by 1.25 per cent this April, a digital marketing company told City PM this morning it will give its entire workforce a pay rise to cover the drop in income.
The founder of 71a, Edward Newman, has promised every member of his team a pay rise in addition to their usual annual salary increase to cover the sharp hike in national insurance.
“I understand why national insurance contributions need to go up this year, but I didn’t want to see my team under financial pressure. This increase, coupled with the massive hike in energy and food bills, is enough to force them to think about what they need to cut back on – I don’t want them worrying,” said CEO Newman.
“For some employees, the difference is an additional £42 month, which for those with single income families is a full tank of petrol. We’ve all been through so much in the past couple of years; the least I could do is remove this stress,” he explained.
“If they can afford to, I believe every business owner should follow suit. Companies will take a double hit because of the increase in employers national insurance contributions as well, so it’s important you stress test your budgets before promising anything to your team,” Newman concluded.