United Kingdom (UK) has increased its national minimum wage, with around 2.7 million workers expected to receive higher pay from this week, according to the BBC.
Under the new rates, workers aged over 21 will see their hourly wage rise by 50 pence to £12.71. Those aged between 18 and 20 will get an increase of 85 pence, taking their wage to £10.85 per hour.
Meanwhile, under-18s and apprentices will receive a 45 pence raise, bringing their hourly pay to £8.
The move has been welcomed by labour rights groups. However, businesses have raised concerns, warning that higher wage costs could lead to price hikes or job cuts.
The Low Pay Commission, which recommended the increase, said previous wage hikes had not significantly affected employment levels.
Prime Minister Keir Starmer said the increase would support low-paid workers, but stressed that more efforts were needed to reduce living costs.
On the other hand, Richard Harrington, chairman of manufacturing body Make UK, said companies support fair wages but highlighted the financial pressure of paying higher salaries to young and less experienced workers.
Defending the decision, Business Secretary Peter Kyle said the government was committed to improving workers’ living standards despite challenging economic conditions.
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