Minimum wage increased

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Manufacturing News, Source : TheManufacturer.com
Published : 07 Mar 2007 12:23
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Low paid workers operating on the bottom rungs of manufacturing industries will be among those to benefit from the latest increase in the minimum wage announced today.

More than a million workers, two thirds of them low paid women, will benefit from a rise in the national minimum wage from £5.35 to £5.52 an hour from October, trade and industry secretary Alistair Darling announced.

The new level recommended by the independent low pay commission will also mean increases from £4.45 to £4.60 for 18-21 year olds, and from £3.30 to £3.40 for 16-17 year olds.

Today's announcement means the minimum wage has gone up by almost 30 per cent more than inflation since it was introduced in 1999.

Alistair Darling said: "Just 10 years ago home workers could be paid as little as 35p an hour, cleaners £1.30 an hour and security guards £2.25 an hour."

In January new measures came into force to back the minimum wage with tougher enforcement. These include a typical £200 penalty for underpaying a single worker and the risk of a criminal record and a £5000 fine for employers who ignore the rules.