Minimum wage increase ‘bad for business’
Mar 26 2010
“The minimum wage is set to increase by 2.2 per cent”
A hike of 2.2 per cent in the minimum wage could risk thousands of jobs, warns the Chartered Institute of Personnel and Development (CIPD).
Charles Cotton, performance and reward adviser at the CIPD, says: ‘Combining a higher minimum wage with the impending hike in employers’ national insurance contributions represents a hefty “tax on jobs”. It is difficult to see how this increase will help create jobs or offer a boost in training places for unemployed young people.’
However, John Cridland, deputy director general of the Confederation of British Industry, believes the increase was modest. ‘[It] recognises that many businesses are struggling and will help protect jobs at a time of rising unemployment. The inflation-busting rise some unions had called for would have hit firms hard and put many lower-paid workers on the dole,’ he adds.
The National Minimum Wage will rise from £5.80 per hour to £5.93 in October.