Pay rise for a million workers
The minimum wage is set to go up again this October...
Sick of reading bad news about the economy and the state of the nation's finances all the time?
Well, guess what?
For a change, we have some good news: nearly one million workers will be better off this year, thanks to an increase in the minimum wage.
The increase will come into effect on 1 October 2011.
Low-paid workers stand to gain as follows:
|
Age |
New hourly wage (£) |
Old hourly wage (£) |
Change (%) |
|
21+ |
6.08 |
5.93 |
+2.5 |
|
18-20 |
4.98 |
4.92 |
+1.2 |
|
16-17 |
3.68 |
3.64 |
+1.9 |
Apprentices under the age of 19 and older apprentices in the first year of apprenticeship will also see a 4% increase in the minimum wage to £2.60, up from the current £2.50.
The Trades Union Congress described the rises as 'relatively modest' but said they would provide a welcome pay boost for around 840,000 low-paid workers in the UK. What's more, the TUC said the increases should stimulate local economies where workers spend their wages, and that there would be room for further increases once the economy started to recover.
Every little helps?
But although these increases will be welcomed by low-paid workers, they won’t have anyone jumping for joy. For example, an employee working a forty-hour week at the highest minimum wage will only get an extra £6 a week before deductions. Then again, over the course of 52 weeks, this comes to £312 before taxes, which is better than a slap in the face with a kipper!
On the other hand, it’s sometimes said that “one man’s pay rise is another man’s price rise”. In other words, some companies may use the higher minimum wage as an excuse to pass on price hikes to their customers.
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See the guideOther firms may decide to cut back, prune their wage bill and lay off some of their workforce.
The British Chambers of Commerce has criticised the pay rise, saying it's the wrong increase at the wrong time. And the priority should be getting people back into the job market. What's more, "youth unemployment is at a record high and we can't afford to price young people out of work."
Meanwhile, the Unite union has said the small increase will be completely outstripped by the current rate of inflation and will do little to help the lowest paid keep up with the rising cost of food and fuel.
I want a pay rise, too!
Overall, however, any increase in pay has to be good news - however small. But what if you earn more than the minimum wage, so aren’t set for a pay rise this week or indeed, any week in the near future? Obviously times are tough, and many of us are fighting to keep our jobs, never mind trying to increase our pay.
Still, you never know, if you deserve a pay rise, it can often be worth at least asking for one – and at least then, you’ll know you tried your best. Read Six top ways to pick up a pay rise and Get a pay rise tomorrow for tips on how be successful.
This article has been updated from an earlier version.
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Comments
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NOT SUCH GOOD NEWS Minimum Wage (Amendment) Bill 2nd reading was on 18.3.11 Low Pay Commission inquiry The Low Pay Commission must consider and take evidence on the availability of employment opportunities and the impact of the national minimum wage on job creation and access to employment in all travel to work areas where the average level of unemployment in the preceding year has been above the national average, and must consider in the light of that assessment whether to recommend that the minimum wage in any such area should be set at a level below the national minimum wage.
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The minimum wage is an anomaly as it enables a poor worker to be paid as much as a good worker in the same job. Every increase in this minimum wage that is not earned by an equivalent increase in productivity is no more than an increase in inflation and a disincentive for an individual to strive for betterment. During this current period of financial restraint and until the nation debt is heading south there should be an absolute freeze on all pay rises and a ban on bonuses for at least two years and a freeze on all social welfare benefits except state retirement pensions. Older people's free bus passes should cease to be free and attract a £1 fare per journey. Car tax should be charged to that not so small number on higher rate of DLA who currently get free car tax. Social housing rents should be raised to and permanently remain at economic market levels, those in need get rent allowance and don't need subsidised housing. Those that learn hard and work hard will prosper, those that don't will stagnate and live uncomfortably at the bottom of the pile. We've had it good for some years living on money borrowed but not earned, now we must go without while paying it back.
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Minimum wage.. go on the dole - how can anyone live on ridiculous low amounts, so there you go folks - WORK HARD AT SCHOOL - take advantage of the free education at secondary school and then go to university (good debt, I know its a ridiculous amount) or learn a trade - be in charge of your own destiny - dont buy cars on HP - only a degree and/or a house on credit.. be wise!!!!
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12 April 2011