Summary
In this report,
'National
Minimum Wage' (Cm. 7056), the Low Pay Commission recommends a 3.2% increase
in the minimum wage for adults to £5.52 in October 2007, which is a moderate
increase compared with the past two years.
The proposed increase
is in line with the majority of recent pay settlements. The Youth Development
Rate is recommended to increase from £4.45 to £4.70, and the 16-17 rate
should increase from £3.30 to £3.40. The cautious approach is partly due to
the concerns expressed by employers about the pace of recent increases, but
also takes account of the prospects for the UK labour market and economy, and
the impact of other Government legislation.
The Commission also
monitored and evaluated the impact of the minimum wage and considered its
effect on different groups of workers since its inception in 1999.
Chapters cover:
- The history and economic background of the
minimum wage
- The impact of the wage on earnings, the labour market and firms
- Effects on specific sectors and small firms
- Groups of workers and
specific enforcement issues
- Young people and trainees
- Compliance and enforcement
- Setting the rates.
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How does it affect me?
If you
are an employer with minimum wage employees or an employee receiving minimum
wage, this affects you.
The Low Pay Commission here recommends a 3.2%
increase in the minimum wage for adults to £5.52 in October 2007.
Find
out more about the work of the Low Pay
Commission.
