To feel undervalued due to minimum wage increase?

[Littlebittiredoflife]

When I first started this job four years ago I was earning enough in 15 hours as if I was working 16 hours at minimum wage. This meant as a family we could access the tax free childcare scheme. However for a while I've not earned enough to access that. I'm currently earning less than what the minimum wage will be from April. I'm just feeling that my time is worth less year on year given that everything else has risen in price. I'm not sure what I can do bar finding another job, but I'm lucky I like my work and they are flexible with hours. Anyone else feeling this way?

When I used to work in a private sector, I always asked for an annual meeting (regular appraisals are not a norm in every company) where I would discuss progression with a view of earning a pay rise. Did you ask for a pay rise at any point in the last 4 years? What was the feedback?

Your wage will go up in April then.

Presumably OP is on something between what the current NMW is and what it will be in April.

No, the minimum wage is going up in April. Right now I'm earning under what it will be, I hope they will raise it in April to minimum wage and I will talk to them if they don't.

Unfortunately I'm in the charity sector. I did have a pay rise every year from between around 2%-5% which at the time seemed reasonable. It's with the loss of access to tax free childcare (you need to earn 16 hours at minimum wage to get this) and about to earn minimum wage that I've become irked.

I am confused;

Yes your employer will give you the nation minimum wage in April - it’s the law

Is your biggest gripe you don’t currently work enough hours and/or receive enough of a salary to receive in work benefits?

I have sympathy.

It's right that minimum wage has increased as the cost of basics have risen.

But more and more roles have been sucked into minimum wage and it is demoralising if you had done extra to get a little more and are now back being paid the legal minimum.

I find mn a bit obtuse on this.i think people often end up arguing no job is worth more than any other and we should all earn minimum wage and be grateful.

You will at least get minimum wage.

If your employer doesn't want to increase your wage to more than minimum mum wage, that's on them.

Either stay and deal with it, or talk with your feet and find sonewhere else that pays what you want if you believe you and your work are worth it.

Can you ask them to increase your hours to 16 per week so you can access TFC?

I don't know why people get sniffy about being paid the minimum wage. It was meant to enhance the dignity of workers but many on MN act as though it's a personal insult that (a) some people earn the same as them or (b) they are only deemed worthy of the minimum wage.

So op works 15 hours currently but her salary is the equivalent of working 16 hours on minimum wage. So with that, she can access the tax free childcare.
Now that the minimum wage is increasing, even though her employer is paying her the minimum wage amount, because she’s working 15 hours a week, though just a small amount, it means she’ll lose the tax free childcare help.
Basically, it sucks but your options are

1. ask for a small salary increase to meet the threshold or hope they increase it
2. ask if they can increase your hours by 1.

Glad those on minimum wage gets an increase

I think it's the fact that they weren't minimum wage jobs a few years ago. I'm exactly the same. When I started I was a couple of £s an hour above minimum wage but with each minimum wage increase that gap is smaller and in April I will be on minimum wage. For a job that wasn't considered that 8 years ago.

was earning enough in 15 hours as if I was working 16 hours at minimum wage

this indicates you’re above current min wage? You’re not being hugely clear I am afraid.

for the 15 hours you work, you need to be paid min wage, not for an additional hour you don’t.

so if you’re not at min wage for the 15 hours then it needs to go up in April.

Your employer has to pay you at least the minimum wage per worked hour, otherwise they're breaking the law.
Why does others being more valued, i.e. paid more, make you less valued?

So essentially in April your wage will go up to £12.10ph hour but to access the free childcare you need it to be £12.91
Is there no way you could work an hr extra in the week?

I personally would raise it as some people just don't understand the implications and if they/you are unable to add an additional hr into your contract or offer you and uplift I would look around to see what else could work for your family.

My friend did sat and sun work which was hard for the family but worked until she found a school admin role

Could you take on a 0hrs contract and agree with your partner/ family that you will have a consistent time your free for this?

It is demoralizing I get it, think for your long term plan what are you working towards jpb wise and put steps in to get there over the years

You don't qualify for tax free childcare because you don't pay any tax. You earn under the tax threshold (£12.5k), so you can't get a tax benefit on something you've not paid out in the first place.

Your employer will legally need to increase your wage to the minimum wage in April. This probably still won't take you over the tax threshold.

No - it’s that she used to earn above the NMW.

But as the NMW is increasing, the headroom between it and other lower paid roles is decreasing. Because the other roles aren’t increasing at the same rate.

it’s turning into quite the headache for the NHS agenda for change scale. NMW is catching up with Band 4/5 pay which isn’t going up at the same rate.

Yes I am currently above minimum wage. When I started I was enough above minimum wage that my 15 hours was worth 16 hours at minimum wage. Now I don't earn enough to access that. So my money doesn't go as far due both to increased cost of living and because I now have to pay full price for childcare when previously I got 20% of this back. I've never paid any tax and use to be able to access this benefit.

This is the issue

the Governments aim is to make the minimum wage 2/3 of median earnings, this means there will be increasingly more jobs that pay minimum wage as the employers can’t keep up with the increases. Jobs that historically paid above minimum wage are now paid that amount.

I would ask if you can increase your hours by 1 hour because sure enough minimum wage will go up next year and you’ll be in the same position asking for a payrise.

Yes that’s clearer, you don’t pay tax but want to get a tax benefit. You earn above min wage but don’t work enough.

as long as your wage stays at or above min wage, your employer doesn’t need to act.

I do know what you mean, I work for the council and there used to be a decent amount between grades. They’ve actually gotten rid of Grade 1 as with minimum wage increase it’d of been paid same as grade 2 and they didn’t want to demote all grade 2s to grade 1s. They do pay a living wage (this is less than a quid more an hour than min wage) but there’s no where really to go as the next grades up are just pennies more per hour until there’s a big leap to management.

What is TFC?