Government announces increase in minimum wage

Manufacturing News, Source : TheManufacturer.com
Published : 16 Apr 2002 9:14

1.5 million low paid workers entitled to new rates

Around 1.5 million low paid workers will be entitled to higher minimum rates of pay as the Governent increases the minimum wage.

Trade and Industry Secretary Patricia Hewitt yesterday confirmed that the Government intends to increase the main and youth rates of the minimum wage by 10 pence/hour in October 2002, to £4.20 and £3.60 respectively.

The new rate has, however, been criticised by campaigners. Richard Towers, director of the Low Pay Unit, said that the 10 pence increase was ‘crumbs’ compared with the increases paid recently to company executives.

The incease coincides with signs that the labour market appears to be recovering from the downturn after September 11. A survey published by recruitment agancy Reed this week shows 85 per cent of firms planning to hire workers in the next three months, while nine per cent expect to cut staff.

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