TUC calls for minimum wage rise

British small businesses could be asked to pay employees an extra 20p an hour, if an increase on miniumum wage is approved.

The Trades Union Congress (TUC) have announced that they will approach the Low Pay Commission to make their case for a 3.5 per cent rise in the NMW, bringing it up to £6.

This comes despite continually suppressed demand in the UK, and negative inflation rates.

The rates for the period from October 2010 to September 2011 are currently being considered by the LPC, which advises Government on the NMW.

The TUC says that, “average earnings are expected to increase during the period that will be covered by the next LPC recommendation, so too small a rise in the NMW would leave working families in poverty.”

However the TUC does acknowledge that although the recession has posed a very serious challenge, economic growth and recovery is predicted for the period the LPC is considering so the raise can be ‘easily absorbed.’

For more information on the NMW, see our Employers guide to the national minimum wage

Would an increase in the NMW have an effect on your business? Or would this cost be easily absorbed? Have your say.

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