National Minimum Wage will rise to £5.73
The National Minimum Wage will rise again in October 2008 to a rate of £5.73 an hour.
The Minimum Wage rose to £5.52 last October and will rise again this year.
That’s an increase of 3.8% over last October’s rate and is apparently down to the rise in food and energy bills putting pressure on households and hitting the pockets of the lowest paid.
The national minimum wage has risen by 60% since its introduction less than 10 years ago.
For 18 to 21-year olds the current minimum wage rate of £4.60 will increase to £4.77
16 to 17-year olds, currently on £3.40, will get £3.53 an hour.
Adding to PM Gordon Brown’s announcement, John Hutton, the Business Secretary said:
“I am proud of the minimum wage. It makes a real difference to the lives of many of our lowest-paid workers and protects them from exploitation. It also creates a level playing field for business and boosts the economy.”
The move was supported by the TUC who welcomed the wage rate rise and the recent initiative to clamp down on employers who fail to pay the minimum wage.
The recommendation for the wage rate comes from the Low Pay Commission who were under pressure from business to consider a modest wage rise due to uncertain economic times ahead.