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Minimum wage increases to £5.73 per hour
Posted By admin On September 30, 2008 @ 12:39 pm In Business, Finance, Hospitality, Leisure | No Comments
Female workers are expected to benefit most from October’s minimum wage increase.
Around one million UK workers are set to benefit from an increase in the national minimum wage this week, with women comprising two thirds of those affected, according to the Trade Union Congress (TUC).
The minimum wage will rise 3.8% to £5.73 per hour on Wednesday 1 October, saving the taxpayer £245 million in benefit payments and helping to reduce the gender pay gap, the TUC said.
The increase will be the ninth since the minimum wage was first introduced in April 1998. Since its introduction, it has increased 59.2% compared with a 44.2% growth in average earnings.
According to the Union, annual increases to the minimum wage have not led to significant job losses, despite predictions from a number of business lobbyists.
TUC General Secretary, Brendan Barber, commented: “The increase in the minimum wage will help thousands of families, but the low-paid face a high inflation rate as they spend a much greater proportion of their income on food and energy where prices have rocketed.
“It is entirely predictable that some employer groups will say that the minimum wage increase will threaten jobs, yet it has helped millions without significant job losses.”
“Honest employers do suffer however, when dodgy ones fail to pay the minimum wage. Dodging the minimum wage also leaves the UK’s vulnerable workers in even deeper poverty – and we all pay the price for this. Tougher enforcement penalties and greater funding for HM Revenue and Customs are the best ways to crack down on these minimum wage cheats.”
Barber has called for the Low Pay Commission to reject employer scare-mongering and recognise the higher inflation faced by the low paid when it sets next year’s increase.
From 1 October, the adult minimum wage will increase to £5.73 an hour from £5.52. Workers aged 18-22 will be paid £4.77 (up from £4.60) and those aged 16 and 17 will get £3.53 (up from £3.40).
For more information on the UK minimum wage, visit: www.hmrc.gov.uk/nmw [1]
By Natasha Piscitelli
Article printed from ICM Commercial & Business News: http://news.icm.ac.uk
URL to article: http://news.icm.ac.uk/business/minimum-wage-increases-to-573-per-hour/663/
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[1] www.hmrc.gov.uk/nmw: http://www.hmrc.gov.uk/nmw
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