Minimum Wage Increase Comes Into Force

by Michael Ross
Posted by Hannah on 1 October 2008
Minimum Wage Increase Comes Into Force

Provision for over-22s has gone up by 21p per hour, following a government announcement.

The minimum wage for UK adults went up to £5.73 today.

Per hour, workers aged 22 and over could previously earn as little as £5.52. 18 to 22-year-olds also had their minimum wage put up, from £4.60 to £4.77, while 16 to 17-year olds' wage went from £3.40 to £3.53.

The rise was first announced by prime minister Gordon Brown in March. The government plans to strengthen the legislation further next April by introducing a statutory £5,000 fine for employers found to be breaking minimum wage laws.

Employment relations minister Pat McFadden said: "The minimum wage has made a lasting and significant difference to the low paid, with around a million workers benefiting from the increase each year. It is vital that we safeguard this right with effective enforcement, which is why we're bringing in tough new penalties for those who flout the law."

Some firms, however, express concerns that the wage rises might put the squeeze on margins at a time of adverse economic conditions. Bibby Financial Services found in a survey this week that 76 per cent of construction firms were unprepared for the law change.

The national minimum wage was first introduced in the UK by the Labour government in 1999. It was set at £3.60 per hour for over-22s.

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Your Comments

helena
on 4 Oct 2008 21:20
would gordan brown like to try living on this per hour it cost 9,000 for his two hour visit to stormount for hospitalitys.how can this be justified.
 
Cazza
on 3 Oct 2008 01:10
This minimum wage racket is very ageist. What on earth is the relevance of age 22. I thought the age for an adult was 21. I think they make it up as they go along.