Low Pay Commission Consultation on the National Minimum Wage - have your say

The Low Pay Commission has recently asked EEF to give evidence on the National Minimum Wage for its NMW report, to be submitted to the government by the end of February 2008. EEF members can input into the process by sending in their views.

On the last few occasions that EEF had submitted written evidence on the NMW to the LPC, we have argued that, in order to provide members with greater certainty about the cost implications for them of increases in the NMW, future increases should be based on a pre-determined formula, namely the movement in basic rates of pay across the economy over the previous 12 months. For information, a copy of EEF’s evidence that was submitted to the LPC on 14 September 2006 can be downloaded.

As the attached rate table shows, the NMW has increased by just over 50% between 1 April 1999, when it was introduced, and the rate that will apply from October 2007 with annual increases in the NMW over this period varying from a minimum of 2.44% to a maximum of 10.81%.

This cumulative increase since April 1999 is well in excess of movements in average earnings over this period as well as the cumulative increase in rates of pay that have been reported by EEF members.

In order that we can finalise EEF’s evidence to the LPC by 28 September 2007, comments should be sent to David Yeandle by Friday 14 September 2007.