Starbucks increase their wages to all workers

Friday 25th September 2015

The Seattle based company, with more than 500 coffee shops in the UK is to increase workers’ pay by 6% under the new Living Wage – even if they are under 25. This has silenced critics who argue that larger employers employ more under 25 year olds to avoid paying the higher rate. Over half of Starbucks employees are under 25.

Starbucks has said that all baristas, will earn £7.20 an hour, up from the current base of £6.77, and supervisors will earn £8.72, up from £8.20. This is regardless of age and Starbucks has not planned to make price increases to combat the cost of paying the Living Wage, as some competitors in the industry may do.

The introduction of the National Living Wage is due to take effect in April 2016, will start at £7.20 and is expected to rise to £9.35 by 2020.

Sophie Wilson at Gordons says, “The National Living Wage legislation will only apply to those aged 25 and over, and so it is great that Starbucks have decided to increase the pay of those under 25 (who represent the majority of their workforce) too. It shows Starbucks’ commitment to their employees and recognition of their hard work to the business by ensuring them a wage which supports the cost of living. It would be interesting to see if this welcome news means that there is an increase in applicants in the UK to work at the largest coffeehouse company in the world”.

If you would like to discuss this article in further detail, please contact Sophie Wilson, on 0113 227 0211 or at sophie.wilson@gordonsllp.com.