9 ways to support minimum wage workers in the manufacturing industry
The 2025 Autumn Budget declared both a minimum wage and a national living wage increase. Although this is great news for low-paid workers, their wages are still not keeping pace with inflation, and the cost of living is ever-increasing. And for businesses? There’s no escaping the fact that the cost of employing people is rising. In this blog post, we’ll explore the financial pressures facing factory and production workers and dive into the many ways you can support your minimum wage workers in an inclusive, accessible way that will genuinely help them with the rising cost of living and support their financial wellbeing at work.
In a hurry? Here are the top three takeaways from our blog on supporting minimum wage workers in the manufacturing industry.
1. Financial wellbeing is a productivity and retention issue: Low pay is directly linked to financial stress, which in turn drives anxiety, poor health, absenteeism and reduced productivity. This blog reflects research showing financially stressed employees are less productive and more likely to disengage or leave, making financial wellbeing a business‑critical lever for retention and performance, especially in manufacturing roles.
2. You can meaningfully support minimum wage workers even pay increases are limited: With wage rises constrained by minimum wage uplifts, NI increases and pay‑band compression, value‑driven, cost‑effective benefits are the most realistic way forward. Discounts, cashback, salary deduction schemes, EAPs and employer‑funded benefits can stretch take‑home pay and reduce reliance on debt, often at a fraction of the cost of pay increases.
3. Inclusion, accessibility and communication matter as much as the benefits themselves: Benefits only work if lower‑paid, shift‑based employees can actually use them. Avoid benefits that unintentionally exclude minimum wage workers, prioritising simplicity (mobile access, flexible usage), and clearly communicating the total value of the package so employees understand what they’re getting beyond salary. Poor communication is positioned as one of the biggest missed opportunities.
Got time to stick around? Let's dive a little deeper.
Why financial wellbeing matters for minimum wage workers
For low-paid workers, financial wellbeing is critical. Not just important – critical. Not only does it directly impact their ability to cover essential living costs, but it also affects the way they’re able to look after their health. For low-income workers, even the smallest financial setback can trigger a ripple effect that leads to growing problems like debt or housing insecurity, because they’re far less likely to have savings or any financial buffer.
Money worries can have a significant impact on stress, which has a habit of leading to anxiety and depression, both of which are rife amongst minimum wage workers. Not only that, but financial strain can ultimately mean the difference between buying healthy food and affording prescriptions and essential medication, so physical health can easily take a hit.
We surveyed over 2000 employed adults and over 500 HR professionals in the UK to create our Money Mastery report, and discovered that 62% of HR professionals notice a decrease in productivity among financially stressed employees. Pair this with higher rates of stress-related presenteeism and absenteeism, and the picture isn’t looking good for workplace satisfaction or your employee turnover rate.
The link between low pay, financial stress, and employee wellbeing is clear. Still, it’s acting on it that will deliver results, improving employee retention, enhancing your reputation as an employer of choice, and increasing productivity.
When pay increases present a challenge, you need to think strategically
When pay increases present a challenge, you need to think strategically and explore cost-effective ways to bridge the gap and deliver real value. The Minimum Wage and National Living Wage increases coming in April 2026 don’t just raise wages for your lowest-paid workers. The government-led increase closes the gap between pay grades in your business, prompting a review of salaries across the board.
The median pay increase in 2026 is predicted to stay at 3%, as it did in 2025, and the increase in employers’ National Insurance Contributions (NIC) is partially responsible. Cost-effective and money-saving employee benefits come to the forefront, stretching salaries further without increasing your wage bill. Employee Discount Platforms and cashback-earning prepaid cards cost a fraction of the price of a company-wide pay increase to implement, while putting a significant amount of money back in employees’ pockets.
It’s not about offering perks. It’s about delivering value.
- Salary deduction schemes like SmartPay are cost-neutral to run and help employees avoid loans and credit card debt when they need to replace an essential household item.
- Employee Assistance Programmes provide both mental and financial health support, and can help manufacturing employers support low-paid workers when they’re feeling the strain.
Scroll to discover actionable strategies that support your minimum wage workers effectively.
Which benefits are genuinely accessible to lower-paid employees (not just higher earners)?
There are a host of money-saving employee benefits that are genuinely accessible to lower-paid employees, including discounts and cashback, which, on average, put £1,200 back in your employees' pockets each year, when used to their full potential.
We’ve mentioned salary deduction schemes, and it’s important to distinguish them from salary sacrifice schemes. When an employee enrols in a salary sacrifice scheme, you calculate the repayments before tax and NIC deductions. They deliver tax efficiencies and cost savings for both employees and employers. However, the repayment schedule cannot bring the employees’ take-home pay below the national minimum. This stipulation means that some lower-paid employees may not be able to access higher-value salary sacrifice schemes.
In comparison, your payroll team calculates salary deduction repayments after tax and NIC, thereby reducing the impact on take-home pay. However, salary deduction schemes must still comply with the minimum wage requirements.
So, how can you offer inclusive benefits that cater to both your low-income workers and your higher earners?
Universal non-cash benefits and employer-funded perks can provide real value without affecting your employees’ gross income. Examples of these benefits include:
- Offering up to 20% discounts and 15% cashback on essential, everyday spending.
- Providing health cash plans that cover expenses such as eye tests or dental work, which employees may skip due to the costs involved.
- Offering subsidised or free food on-site to reduce your employees’ daily spending.
- Providing enhanced sick pay to your employees to help them get back on their feet after a period of illness.
- Opting to cover your employees’ dependents if the worst-case scenario happens, via a life insurance policy.
- Making pension contributions that exceed the minimum legal requirements to make a positive impact on your workers’ financial futures.
It’s not just what you offer, it’s how you deliver it, making the user experience as simple and accessible as possible. Our Pluxee Employee Experience Platform unifies all your benefits in one place, delivered to your people in an app they can access anytime, anywhere.
Whether they need to speak with a virtual GP the same day, book a discounted holiday, save on their weekly or monthly shopping vouchers or apply for a salary sacrifice car, they can do it all from the app.
Simplicity and transparency matter to your HR teams, too, which is why the admin portal gives real-time reporting across every benefit you offer in one management hub, enabling you to measure the return on your investment (ROI).
Benefits that work for shift-based and hourly manufacturing roles
The financial pressures facing factory and production workers include the rising cost of living, with many of these low-paid workers struggling to pay household bills. There’s a rise in the number of people taking on a second job (Lancaster University) to help them feel more financially secure.
The right benefits can help alleviate some of this financial stress. The most effective benefits for shift-based and hourly workers are those that focus on predictability, immediate financial relief, and reducing the physical toll of non-traditional hours. Many will struggle to get time off to attend a GP appointment due to their working hours, making Online GP, which is available 24/7, 365 days a year, a game-changer.
With flexibility being a top priority for a sizeable percentage of workers, this is an area where you can make a substantial impact with little cost to your business. Be flexible with shift-swapping and self-rostering to give workers the freedom to manage their personal lives.
9 ways to support minimum wage workers in the manufacturing industry
Offering life-enhancing benefits helps attract and retain talent, reduces financial stress, and leads to a more focused and productive workforce. Take a holistic approach that empowers people to manage their day-to-day finances, handle unexpected expenses and plan for a brighter future.
What does this actually look like?
Here are our top 9 ways employers can support financial wellbeing where wage increases are capped. From minimum wage to financial security: what good employer support looks like
1. Make everyday spending more affordable
One of the most effective ways you can support your low-income employees is by making their essential spending more affordable through a discounts platform, giving them hundreds of ways to save money every day.
For those who prefer a more in-the-moment solution, our Pluxee Card is the perfect choice, empowering them to top up on the go and earn up to 15% cashback with their favourite high-end and high street brands, including supermarkets. Our market-leading prepaid card is powered by Visa and comes with our Pluxee Employee Experience Platform as standard.
2. Provide financial education for better budgeting
Knowledge is power, so empower your low-paid employees to make their money go further by giving them access to tools that help them create and manage savings plans.
Hosting seminars and workshops on topics such as budgeting, investing, managing debt and retirement planning helps to equip your workforce with the knowledge they need to plan for the future and thrive (rather than simply survive!).
3. Train financial health first aiders
Financial health first aiders provide peer-to-peer support to colleagues experiencing financial difficulty. They’re trained to recognise signs of financial distress, offer confidential guidance and emotional support, and signpost to professional, independent and impartial resources.
Training one or more of your employees as financial health first aiders not only shows your workforce that you’re serious about supporting them, but also helps remove the stigma associated with financial difficulties, as the stigma surrounding mental health issues is slowly fading.
4. Offer access to the experts
If you can bolster your offering with free or subsidised access to independent, qualified financial advisors for personalised advice, you can go one step further to show your commitment to the financial future of your workforce.
In addition, offering professional mental health support through an Employee Assistance Programme is an excellent way to provide confidential counselling for employees experiencing stress, which is often linked to money worries, and has the added benefit of reducing absenteeism caused by stress and anxiety.
5. Employer-led savings schemes
Payroll-deducted savings schemes allow employees to set money aside directly from their wages, making it easier for them build up a financial buffer and save for their future.
You can also offer loan consolidation schemes, providing them with a better rate than they’ll find on the high street, helping employees become debt-free faster.
6. Remove the stigma
One of the most important things you can do as an employer is normalise conversations about money to help reduce the stigma around debt and financial struggles.
If you can create a culture where people feel comfortable talking about their finances, for example, by training financial health first aiders, then you’ll find people open up earlier, preventing smaller problems from becoming unmanageable.
7. Upskill
Creating structured progression paths so your employees can develop not only benefits them, through better job satisfaction and ultimately, higher earnings, but it also benefits you as a company.
When an employee knows the skills and milestones required to reach the next stage of their career with you, they have complete clarity on the next steps required to access new challenges, a higher income and better job satisfaction. It becomes a career, rather than a job.
Upskilling leads to greater workforce commitment, a huge benefit for your business. There’s an element of cost efficiency, too, with internal promotions typically costing less than external recruitment, plus quicker transitions into new roles and, let’s face it, lower risk.
8. Be transparent
Be open and honest about your pay structures, so your employees are clear on how they can achieve career progression and reach higher rates of pay. In addition, it’s wise to ensure you have ongoing communications about your business results, so your workforce understands how the company is performing.
The benefits of transparency include building trust, boosting morale, improving recruitment and retention, and ensuring fairness and equality amongst your workers.
9. Communicate total value
It’s all too easy for employees to take their salary at face value, forgetting the other benefits on offer. In our blog post ‘Navigating employee pay review conversations in 2026’, HR Director Kimberley Rowbottom shares her expert insights on navigating challenging HR pay review conversations and communicating the value of your employee benefits package.
Kim details how the biggest missed opportunity is often failing to maximise the benefits that are already available, and recommends that you “consider remote options, flexible hours, and even extra wellbeing days can speak volumes, and don’t underestimate the impact of communication. Often, the perks we have go unnoticed, so let’s make them visible and meaningful.”
From shop floor to financial security: building a financially resilient manufacturing workforce
This blog explored the many ways employers can support financial wellbeing without increasing wages, benefiting both their low-paid workers and their business expenses.
It’s not just about salary anymore, it’s about the whole package.
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