Pay and Incentives

Published 31 August 10

Minimum levels of pay have to date been set by the Agricultural Wages Board (AWB) within England and Wales. On Oct 1 2013 the AWB, as an body, was abolished. This in effect means that employees taken on after the 1 Oct 2013 unlonger come under the order, their terms and pay rates are determined by the National Minimum Pay rates.

For existing employees (employed pre Oct 1 2013) the terms and rates as set out by AWB still apply, although in effect rates going forward will need to take account of other regualations as set down in emplyment law..

Further information on the minimum pay rates in England and Wales can be found here.

In Scotland:

In Northern Ireland:

 

TARGET-DRIVEN PAY

Alternatively, in order to encourage good levels of productivity, an employer may offer a target-driven wage, where the minimum wage is supplemented by a performance-related bonus. On a dairy unit this bonus could be related to any number of factors, such as overall milk yield or yield per cow, or related to fertility, milk quality or hygiene results.

Target-driven pay will not suit all employers, employees or circumstances. It is only effective where the employee has significant independent control of factors in the enterprise enabling adequate influence over productivity.

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