April 2025: 

Low Pay Commission Submission

As part of her new role with ISME, Lisa helped draft a submission to the Low Pay Commission, which sets the minimum wage and is planning to introduce a Living Wage in 2026.
 
This submission clearly outlines why the current approach to wage increases is putting unsustainable pressure on small, labour-intensive industries like ours.

The document outlines:

  • Wages have increased faster than inflation, making it hard for salons to cope. Since 2000, the minimum wage has gone up 141.9%, while the cost of living has only increased by 64.4%.
  • Labour costs are now making up 75–80% of turnover in some salons, leaving very little to cover rent, stock, or training.
  • Apprenticeships are being cut back. Even large industry employers have reduced trainee numbers by over 30% because the cost of training is too high.
  • The plan to introduce a Living Wage based on national median earnings does not reflect the reality in industries like hairdressing, where earnings and margins are much lower.
  • How rising costs could contribute to the growth of shadow economy

The submission recommends:

  • Linking future minimum wage increases to inflation, not a fixed timeline.
  • Re-introducing financial supports for salons that train apprentices.
  • Adjusting the Living Wage model to better suit lower-margin sectors like hairdressing.
Read the full submission here