Payroll services for charities


Are Annual Pay Rises Mandatory?

Written by  Monday, 07 March 2016

It is approaching pay raise time for many of us and with the cost of living forever rising, many of us look to our employer to increase our wages and “fill the gap” inflation leaves. However, is an annual pay rise a mandatory requirement for an employer?

The short answer is no. There is no statutory requirement on an employer to give their employees an annual pay rise, so long as that employee is being paid over National Minimum Wage the employer is well within their right to maintain a salary at the same level indefinitely.

If you are lucky enough to receive an annual pay rise, the amount you can expect to receive is down to the discretion of the employer. They may operate an “across the board” pay rise where all employees get the same, or it could be based on a reward scheme for the amount of effort an employee has put in in the last 12 months.

Across the country, the average pay rise for 2015 was 3% and specialists predict much of the same for 2016. However, that is not to say you should expect that from your employer as they are not obliged to give you anything if you earn over the National Minimum Wage. Anything you do get should be considered a good thing even if it is less than 3%.

Fingers crossed!


Carly Boyd

Carly started her career with Dataplan back in 2013 as a temporary admin assistant. Coming from a background in Graphic Design, she fell in love with payroll and worked her way up to Project Manager just 2 years later. Carly is currently involved in the massive undertaking that is setting up Auto Enrolment pensions, and continues to show her commitment to payroll by studying for her Payroll Management degree.

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