A formula to determine future rises in the National Minimum Wage must be used so employers have some certainty about its potential impact, according to manufacturers’ organisation the EEF.
In evidence submitted to the Low Pay Commission’s consultation which closed today (25 September), the employers’ body argued that future increases in the NMW should be determined by a formula based on movements in basic rates of pay across the economy.
Such a measure would help manufacturers plan for the direct and indirect impact that increases in the NMW will have on their costs, and enable them to make necessary changes to their remuneration arrangements to maintain differentials, the EEF said.
David Yeandle, EEF head of employment policy, said: “In these difficult economic times, it is even more important for manufacturers to have greater certainty about future increases in the NMW and the potential direct and indirect impact on their business.
“Increases in line with basic rates of pay across the economy will help to achieve this objective and ensure that future increases in the NMW reflect the economic circumstances of the time.”