Summary of the editorial from IDS Pay Report 967, January 2007

The impact of the NMW in 2006 and prospects for 2007

The National Minimum Wage (NMW) continued in 2006 to be an important influence on pay bargaining in lower-paying sectors. The minimum wage has increasingly become the lowest rate of pay in a wide range of organisations. During 2006 it has continued to be the key reference point for companies paying slightly ahead of the NMW but who want to distance themselves from it. The raising of the minimum wage each October has both direct and indirect effects. Here we examine some of these effects and look at what the level of the NMW might be in October 2007.

... the full editorial can be read in IDS Pay Report 967