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Government considers increasing the National Minimum Wage

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23/01/2014

Ministers are reportedly considering increasing the national minimum wage (NMW), which is currently set at £6.31 per hour for an adult worker, by up to 50p per hour. They claim that the NMW is currently outstripped by the rising cost of living and is now worth the same in real terms as in 2004. The Low Pay Commission has been asked by Liberal Democrat Business Secretary Vince Cable to consider whether a rise in the NMW can be justified and it is due to report back at the end of January. In the meantime, the Chancellor is appearing to downplay the speculation, indicating that a rise is desirable,but if it came at the cost of jobs it would be self-defeating. Is this a case of testing the water with employers or beginning the process of sowing the seeds for a future rise? Watch this space!

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