Management Report on Minimum Wage and Living Wage

Management Report

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Management report is the communication of business results, risk and issues which are
created by the manager for audience of a manager, government bodies and executives
management. It is the critical tool which is helpful for directing and controlling business.
Sainsbury was established in 1869. It is the largest supermarket chain in the United
kingdom. The company had its headquarter in the Holbron, London, United Kingdom. The
above report includes the management report on the minimum wage and living wage. It has been
applied on the specific company which operates in the business in UK. The report includes the
aim, legal regulations and cost and benefits to the company by these wages. The report ends with
the recommendation to the company.
MAIN BODY
Sainsbury is the largest chain of supermarket in the United Kingdom. The company has
15.35 of the market share. The company was founded by John James Sainsbury. Net Income of
the company is £518 million. The number of employees in the company are 186,900 which is the
biggest number of employees in this sector.
National Living Wage -
It is the amount of money which is entitled to the employees over the age of 25. It was
firstly set as National Minimum Wage in 1998 by labour government in the United Kingdom.
This National Minimum Wage was rebranded again rebranded as National Living Wage. Last
year there is hike in National Living Wage from £7.50 to £7.83 for the employees whose age is
25 and over. This wage amount came into existence from 1st April last year. It is the level of pay
which is recommended by Living Wage Foundation which is the independent campaign group.
It is the paid voluntary that is chosen by employers to pay this amount to the employees. It was
worth around 55% of median hourly earning which the working hour wage which is equal if
everyone is paid the living wage in the country. Last year the target of country for the Living
Wage is amount to 60% of median earnings by 2020(Wills, 2016). The Latest forecast suggest
that Living wage will be £8.57 by 2020. The rate is calculated by Resolution Foundation. It is
based on the cost of achieving an adequate standard of living.
National Minimum Wage-
The National Minimum Wage is minimum pay which is paid per hour to the workers of age 16 to
24. This rate is reviewed every year by the government and it is advised to have a minimum