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National living wageLatest NewsPay & benefitsMinimum wagePay structures

Minimum wage uplift creates problems for Ministry of Defence

by Ashleigh Webber 20 Jan 2023
by Ashleigh Webber 20 Jan 2023 William Barton / Shutterstock.com
William Barton / Shutterstock.com

Increases to the national minimum wage rates in April could mean cuts to working hours for some junior Ministry of Defence employees to keep their pay below that of those on a more senior grade, a union has claimed.

The PCS union said that the basic salary for MoD staff on E2 grades would have overtaken the E1 band minimum when the new minimum wage rates take effect on 1 April. This could mean that the spot rate pay for staff on the lower E2 grade could be higher than the rate for those who are supervising them.

To avoid this, the MoD is seeking to cut paid hours worked from 42 to 37 per week, the union claims. However, the PCS said it would not agree to reductions in paid hours and no contractual changes have been confirmed.

National minimum wage 2023

Employment law 2023: six key tasks for HR

National minimum wage rates in 2023

PCS said: “This is a problem entirely of MoD’s making and is the combination of austerity, deliberate pay restraint and the national living wage increasing faster than other MoD salaries.

“This is for MoD to resolve; they can do this by paying a real living wage to all employees and understanding the rampant inflation that is affecting PCS members. This will not be achieved by dangling single-figure percentage pay increases in front of people that can’t pay their bills.

“The Department cannot recruit and retain staff with the skills it requires; it does not pay the wages needed and leaves staff to leave their job in search of better pay or get poorer working for the UK government.”

PCS and other MoD unions have called for an urgent pay meeting to discuss the consequences of the minimum wage rate rise and the effect that this will have on other pay bands and grade differentials.

The MoD has been contacted for a response.

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Ashleigh Webber
Ashleigh Webber

Ashleigh is editor of OHW+ and HR and wellbeing editor at Personnel Today. Ashleigh's areas of interest include employee health and wellbeing, equality and inclusion and skills development. She has hosted many webinars for Personnel Today, on topics including employee retention, financial wellbeing and menopause support. Prior to joining Personnel Today in 2018, she covered the road transport sector for Commercial Motor and Motor Transport magazines, touching on some of the employment and wellbeing issues experienced by those in road haulage.

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