On 17th January, we wrote about George Osborne’s plans to increase the National Minimum Wage to £7.00 per hour by 2015, and the reaction of the Chairman of the Federation of Small Businesses.
Now, Sir Michael Rake who is President of the Confederation of British Industry has spoken out to offer support to an above-inflation increase in the NMW, if not to the level suggested by the Chancellor.
He is quoted as saying that “We can afford something above inflation.” but warned that the Low Pay Commission (LPC) must find a way to introduce a meaningful increase without putting jobs at risk; “the economy is healthy enough to sustain an increase, but we need to be very careful, as too much would be bad for jobs.”
The LPC is due to announce its decision in February, with any changes to be implemented in October.
The penalties for failing to pay the NMW could be severe. To be sure your business is complying with the law regarding the NMW, take a look at our FAQ’s on national minimum wage and other statutory payments here, or contact us for further information