Minimum wage rises 'to affect retailers'

News Article - Friday, March 28, 2008

filed under: Business

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Increases in the UK's national minimum wage (NMW) could affect the growth of retailers, an expert claims.

According to the head of media for the British Retail Consortium (BRC), the current danger is that growth in the minimum wage will considerably outpace that of average earnings, affecting employment in the sector.

Richard Dodd suggests that the proposed rise in the minimum wage planned for October 2008 "should have been contained close to a cost of living, close to an inflation increase".

He explained: "Obviously there's a whole range of costs that are rising for retailers which are creating pressures for them and things like rents, rates, service charges, tax bills and fuel bills are all amongst them."

Small business leaders and retailers have criticised another sizeable increase in the NMW, claiming that it will have a negative impact on employment levels and profits in a time of economic uncertainty.

The minimum wage for adults over the age of 21 increases from £5.52 to £5.73 in October this year, from £4.60 to £4.77 for those aged 18 to 21 years old, and from £3.40 to £3.53 for those aged between 16 and 17.

Payroll software and SME accounting software can play an important role in small businesses managing their accounts effectively and controlling costs when minimum wage increases occur.

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