Minimum wage increase another blow for retailers

HM Government has announced that from 1 October 2012 the adult rate of the National Minimum Wage will increase by 11 pence to £6.19 an hour whilst the Youth Development Rate will be frozen at £4.98 an hour. 

Commenting on the announcement SGF Chief Executive, John Drummond, said: 

“We welcome the Government’s recognition that freezing the youth development rate is a sensible approach during what is an incredibly difficult time for retailers which are faced with rising costs across the board. 

“Unfortunately the same logic hasn’t been extended to the adult rate.  Research shows that a 2 percent rise, on top of other employee costs like NI contributions and holiday entitlement, will mean that the actual cost per hour to a retailer for a full time employee will be £7.23.”