The national minimum wage for adults will go up to £5.05 an hour from October and to £5.35 the following year, the Government has announced. The rate for 18 to 21-year-olds will also go up 15p to £4.25, but the rate for 16 to 17-year-olds will stay at £3 with the next review due in February 2006. The Federation of Small Businesses (FSB) warned that increases in the minimum wage must not become a rubber-stamping exercise. “Continuous year-on-year above inflation increases in the rate are dangerous for the economy and send the wrong message to employers,” Alan Tyrell, the FSB’s Employment Chairman, said.
Minimum wage to rise above £5
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