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AGRICULTURAL WORKERS TO RECEIVE MINIMUM WAGE INCREASE

The Scottish Agricultural Wages Board (SAWB) has agreed, following the annual meeting of the Wages Board on August 26, 2015, proposed increase in minimum wage rates that will come into effect as from October 1, 2015.

The minimum rate of pay for agricultural workers with more than 26 weeks continuous employment will increase by 10p per hour to £7.24 bringing the minimum wage for a 39 hour week to £282.36.

The minimum rate of pay for agricultural workers with less than 26 weeks continuous employment will increase by 20p per hour to £6.70 bringing the minimum wage for a 39 hour week to £261.30. This increase is in line with increases to the National Minimum Wage.

It comes after a consultation on the future of the Scottish Agricultural Wages Board was held earlier this summer. Responses are currently being analysed and will be carefully considered before any decision is reached.

NFU Scotland Chief Executive Scott Walker said:

“There is justifiable frustration at a Scottish farming business level given that they now have to give consideration to a national minimum wage rate, a Scottish agricultural minimum wage rate and have the future prospect of meeting the proposed UK living wage rate requirements.

“Farmers know that to attract skilled and dedicated workers, they need to pay a wage that is competitive. The dysfunctional supply chain, and the price pressure being heaped on all farm businesses at this time makes attracting and keeping staff a genuine challenge as the rewards for the risk involved in farming are simply not there. Over time, costs have had to be cut for Scottish farms to survive and this means more and more businesses no longer have workers outside of the farming family.

“The supply chain needs to recognise that what they pay for farm produce is the biggest determinant of what a business can afford to pay skilled and reliable staff and any sensible sourcing commitment from retailers needs to address this issue.

“Scottish Government also needs to declutter the employment legislation around farming. We simply want to see agricultural businesses treated in the same way as all other employers.”

The headline rates agreed by the Board are:

  • A minimum hourly rate of £6.70 for all workers in the first 26 weeks of employment. This increase is in line with increases to the National Minimum Wage (an increase of 20p per hour);
  • A minimum hourly rate of £7.24 for all workers employed for more than 26 weeks by the same employer (an increase of 10p per hour);
  • A minimum hourly rate of £4.02 for workers who undertake a Level 2 Modern Apprenticeship in Agriculture (an increase of 6p per hour);
  • An increase in dog allowance to be increased to £5.49 per week for each working dog up to a maximum of 4 dogs (an increase of 8p per dog);
  • The additional sum payable to workers with appropriate qualifications will increase to £1.10 per hour (an increase of 2p per hour);
  • An increase in the daily rate of the accommodation off-set for accommodation other than a house to £5.35 (an increase of 34p per day) which is in line with the National Minimum Wage rate.
  • A minimum hourly rate of £10.05 for overtime for all workers in the first 26 weeks of employment (an increase of 30p per hour);
  • A minimum hourly rate of £10.86 for overtime for all workers employed for more than 26 weeks by the same employer (an increase of 15p per hour).

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