Tools & Support / Business News
Wages on the increase
Shropshire employers struggling to deal with the credit crunch must now prepare for an increased wages bill from October onwards.
Chris Dorricott, who leads the Payroll Team at Dyke Yaxley, Chartered Accountants, in Shrewsbury, said the national minimum wage for adults was set to rise to £5.80 an hour.
"In these challenging economic times, an increase in the minimum wage is not the kind of news employers would be hoping for."
"But the Low Pay Commission's decision to increase it by 7 pence an hour is designed to protect low-paid workers job and their earnings too," said Chris.
"They have taken the current climate into account, and have tried to balance the needs of both workers and businesses by introducing a moderate increase."
"Many business groups had suggested the minimum wage should stay frozen at its current level for this year, because of the severity of the downturn and the almost daily announcement of job losses."
"But the modest rise should help to protect jobs and shows that the Low Pay Commission and the Government have recognised that many businesses are already struggling."
As well as the adult minimum wage increase, other hourly rates will also rise. The rate for 18 to 21 year olds will increase from £4.77 to £4.83 and for 16 and 17 year olds, the rate will go up to £3.57 an hour from £3.53.
From October 2010, the adult band will be extended to include 21 year olds.
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