UK increases minimum wage by 4.1%
The UK government yesterday announced a 4.1% increase in the national minimum wage for workers aged 21 and over, to around $16.67 an hour from April 2026. The aim is to narrow the gap between the minimum wage and average wages, although there are concerns this could lead to price increases.
It is estimated that around 2.4 million workers aged 21 and over will see their wages rise in this adjustment, while around 300,000 young workers and apprentices will get a 6-8.5% increase as the UK gradually abolishes lower minimum wages for this group.
The UK finance minister says pay rises are needed to ensure low earners are paid fairly.
However, UKHospitality, the UK hotel industry association, said the new pay rise would put huge pressure on businesses. Its chairwoman, Kate Nicholls, said businesses were “reaching their breaking point” due to a series of additional costs, and the new pay could force businesses to raise prices, contributing to inflation. She also worried that increasing wages for less experienced workers would make it harder for young people to find jobs.
Britain now has the highest inflation rate among developed economies , reaching 3.6% in October, partly due to rapid wage growth in the wake of the COVID-19 pandemic. While the Bank of England expects inflation to return to its 2% target by mid-2027, many policymakers warn that wage increases above 3% could slow the process. Rising labor costs are also thought to have contributed to a hiring slump this year. Unemployment is now at 5%, its highest since 2021.
However, the Low Pay Commission, which recommended the 4.1% increase, said previous increases for workers over 21 had not had a significant negative impact on employment. Chair Philippa Stroud said the commission had weighed the cost of living pressures on workers against the difficulties businesses face ahead of the tax hikes in April next year.
Source: https://vtv.vn/anh-tang-luong-toi-thieu-100251127100529956.htm
Comment (0)