UK National Minimum Wage Increase

In October 2006, the UK’s national minimum wage is set to increase by 6% and unsurprisingly companies are complaining yet again about it.

These companies, though, need to consider where they would be:

• Without employees
• Without customers who can afford their products

The UK is an expensive country to live in, at times, and not because of the national minimum wage, but because companies are out to get maximum profit possible.



If anything, the national minimum wage can be used as an excuse for employers to pay employees less. Rather than being paid based upon their skills and/or experience, an employer can just pay people the minimum as required by law. They can also use it as an excuse not to offer an annual cost of living increase. Another tactic companies can use is that they pay the basic rate and then a bonus. When there is a national minimum wage increase the bonus is decreased by the amount that the basic rate was increased by so in fact more money isn’t received.

Companies can do the above … and sadly they do it. I know this from personal experience.

So, in October this year companies will make a big fuss, increase prices so that the “cost” is carried by the consumer and the employees won’t receive any more money due to bonuses being slashed. What a wonderful country we live in.