The EEF renewed calls it has made in previous years for a national minimum wage increase formula "based on movements in basic pay across the economy".

EEF head of employment policy David Yeandle, commented:

In these difficult economic times, it is even more important for manufacturers to have greater certainty about future increases in national minimum wage and the potential direct and indirect impact on their business. Increases in line with basic rates of pay across the economy will help to achieve this objective and ensure that future increases in the national minimum wage reflect the economic circumstances of the time.

The 2009/2010 national minimum wage increase - which came into effect at the start of this month - saw the adult rate rise by 1.2%, from £5.73 per hour to £5.80 per hour. This was its lowest increase since the national minimum wage was first introduced just over 10 years ago, in April 1999. The annual national minimum wage adult rate increases enacted between 2000 and 2008 ranged from 2.4% to 10.8%.

However, as we have recently noted, the 1.2% increase to the national minimum wage adult rate is actually outperforming the whole economy headline pay award as measured by pay specialists at IRS.

Attention is now already turning to what we can expect from the 2010/2011 national minimum wage increase, which will come into effect on 1 October 2010.