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National Minimum Wage to Increase

It has been confirmed that the National Minimum Wage will increase by 12p from October 2013.

This will mean for adults working in jobs on the National Minimum Wage their pay rates will increase from £6.19 per hour to £6.31 per hour.

The 12p increase equate to a 1.94% pay increase against a far higher national inflation backdrop, with the Retail Prices Index (RPI) inflation currently standing at 3.2% and the Consumer Prices Index (CPI) at 2.8%.

There has been mixed reaction to Business Secretary, Vince Cable’s announcement earlier today.

The British Chambers of Commerce was skeptical as to whether this announcement would have a positive effect on the economy.

Dr Adam Marshall, the BCC’s director of policy, said: “We are disappointed that the government has chosen to raise the adult national minimum wage rate by 1.9%, an increase that is over 50% higher than current average pay growth.

“While the pressures of inflation are affecting many people, including the lowest-paid, the scale of this rise adds significantly to business costs, most of all by contributing to broader pay inflation. It will also make some employers less inclined to hire additional members of staff.”

Whereas the TUC said the increases were not enough.

TUC general secretary Frances O’Grady said: “Boosting the incomes of the low-paid goes straight into the economy and wage-led growth must be part of the recovery, so we would have liked to have seen minimum wage rates go up further today, even if the government has rightly rejected calls for a freeze.

City Centre recruitment with offices in Southampton, Bournemouth, Weymouth and Yeovil engage numerous temporary candidates in jobs on the national minimum. Their Managing Director, Dan Shrimpton commented on the latest increase:

“Our business operates in an area of the country where unemployment is low and the cost of living high, this increase in the national minimum wage will have a positive impact on the workforce by A) allowing candidates working in minimum wage jobs to stay working in these jobs and B) attract additional candidates to the area from the rest of the UK, the EU and the world. ”

Simon Thomas, Director of City Centre recruitment went on to say:

“the initial impact on our clients based in Hampshire, Dorset and Somerset to which we provide candidates will be harsh by higher costs however the benefits, as outlined by my colleague, we consider will outweigh this modest increase by more motivated and better quality candidates being available.”

A full breakdown of the new rates are as follows:

Current rate Rate from October 2013
Adults aged 21 and above £6.19 £6.31
18 – 20 year olds £4.98 £5.03
16 year olds above school leaving age and 17 year olds £3.68 £3.72
Apprentices under the age of 19 and older apprentices in the first year of apprenticeship (other apprentices are eligible for the relevant age-based rate of the NMW) £2.65 £2.68

City Centre recruitment provide temporary and permanent jobs to candidates and candidates to clients in the Engineering, Industrial, GLA, driving and logistics, catering, chef and cleaning sectors. If you would like more information on our services or to view our latest jobs in Hampshire, Somerset and Dorset please visit our website.

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City Centre

Dan Shrimpton - Managing Director City Centre Recruitment

Bournemouth - 01202 586 930

Southampton - 02382 350 250

Weymouth - 01305 239 239

Yeovil - 01935 478 800

Bridgwater - 01278 557 575

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