According to the government, the commencement of the NLW “will be the largest annual increase in a minimum wage rate across any G7 country since 2009 in cash and real terms.” Whilst it promotes positive moral values of increased motivation and financial security for workers, such a substantial increase will certainly have a negative financial impact on a business’s wage bill.

Pharmacy owners will need to determine whether their wage bill, with the weight of the NLW factored in, will be sustainable.

If the NLW cannot be absorbed into your profit margin, then what options are available?

• The first option would be to reduce headcount in your business through either redundancies or slower recruitment.
• The second is to pass on the increased cost to customers.
• The third would be to reduce costs in another manner, for example, through reducing hours or removing non-essential employee benefits.