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Minimum wage rises to £5.80

UK national minimum wage will rise 1.2% from £5.73 to £5.80 per hour from October.

The decision to raise the minimum wage by 1.2%, confirmed by the Government today, was met with approval from the British Retail Consortium (BRC) and British Shops and Stores Association (BSSA) today.

In its evidence to the Low Pay Commission, the BRC said this year’s increase should be no more than 1.5%. It argued that employers had already suffered costs as a result of an increase in annual leave entitlement from 20 to 28 days over the past two years. 

British Retail Consortium director general Stephen Robertson said: “The best protection for wages is preserving jobs to keep people working and earning not handicapping employers with excessive new costs.”    

Robertson added: “1.2% strikes a common sense balance between helping low-paid workers and enabling retailers to maintain, and where possible, increase job opportunities.”

BSSA chief executive John Dean said: “An increase of 1.22% in the adult rate to £5.80 per hour effective from October is a recognition of the strain payroll costs are placing on retailers in the current economic climate and, from an employer perspective, compares very favourably with previous inflation busting rises.”

“The Government has adopted a pragmatic stance of accepting the importance of limiting the impact on payroll costs whilst simultaneously accepting the necessity of maintaining a realistic level of minimum wage,” added Dean.

 

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