Set the right pay rates

Making pay comparisons

To make sure you are getting your pay rates right, it is often useful to check that the rates are competitive and that your pay system is up-to-date with developments in the law.

Comparisons can be made with other businesses in your region, your industry or competing industries. This is called benchmarking.

There are easily accessible benchmarking services: You could look at the benchmark index for small businesses at the Benchmarking website.

The National Minimum Wage (NMW) is the same across industries and regions and applies to virtually all full time and part time workers. However, there are still occasional regional differences in pay rates across the same industries. Often these can occur because of higher living costs in some regions or local problems in hiring and keeping workers. Find our about the current rates of the NMW at the Department of Trade and Industry website.

Different factors also influence pay in different industry sectors. Examples include the need for specialist skills or experience, whether the right workers are available, the demand for the products or services, job location and the nature of the work.

Subjects covered in this guide

• Introduction
• Pay rate systems
• Setting up a new pay rate system
• Making pay comparisons
• Equal pay for work of equal value
• Reviewing pay rates and systems
• Commission, bonuses tips and gratuities

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