Expecting a raise

Q. Could you provide an update on the forthcoming minimum wage increases and also explain how proposed changes in maternity pay entitlement could affect my my small business

The Department of Trade and Industry has announced that the national minimum wage will increase from £4.85 an hour to £5.05, with effect from October 2005 for adults and that it will increase to £5.35 from October 2006. As this increase is well above the rate of inflation, there are already complaints from employers that it will lead to problems. The youth rate for 18 to 21-year olds will increase to £4.25 in October 2005 and £4.45 in October 2006; there is no change to the 16 and 17-year-old

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