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Happy Birthday to the national minimum wage

The national minimum wage is 10 years old today. When it was introduced on 1 April 1999, the adult rate was set at £3.60 an hour. Since then, it has risen by more than 59%, to £5.73 an hour. The development rate was set at £3.00 an hour, and is now £4.77.

Over the same period, the median hourly wage for all employees has risen from £7.57 to £10.53, an increase of 39.1%.

Around four in 10 of the organisations we recently surveyed (subscription required) said that the minimum wage had had no effect on their organisation, while 31.8% reported their experience as quite or very positive. Most of the remaining respondents reported a mixed experience.

However, despite the statutory pay floor, the Annual Survey of Hours and Earnings 2008 (on the National Statistics website) recorded 288,000 jobs paid below the national minimum wage in April 2008.

Recommendations for the increase in its 11th year, due to take effect from 1 October 2009, have been delayed, and the Low Pay Commission is now due to report by 1 May 2009. After this date, the body will have a new chair, David Norgrove (on the BERR website).

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Sheila Attwood | |

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