21p extra on the National Minimum Wage
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Slowly, step-by-step, the National Minimum Wage is increasing. The latest increase of 21p per hour represents a 3.8% increase on the previous rate of £5.52. The NMW was last increased in October 2007, just six onths ago.
Whenever the NMW is changed, it is a surefire bet that the news stories report a variety of reactions from the key stakeholders in the minimum wage debate.
I picked up on a couple of contrasting responses in this BBC news article.
The TUC (Unions) welcomed the change, but pointed out that there are still around 150,000 employees in the UK being paid less than the minimum rate. The unions are also concerned that the uprating in the value of the minimum wage is actually less than the current rate of retail price inflation. Which means that the real wage of the pay floor might actually have fallen.
Employers organisations seem relatively relaxed about the latest increase, which is broadly in line with the average increase in earnings.
The Financial Times reports today that
“The adult minimum wage rate has risen by 59 per cent since it was introduced at £3.60 an hour in April 1999 – more than twice the increase in the retail price index over the same period. A study by Eurostat, the European Union’s statistical arm, reported last summer that Britain’s minimum wage was the third-highest out of 20 EU nations and almost twice the then US federal level.”
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