FSB: Most small business pay over the minimum wage

The majority of small and medium-sized enterprises pay their staff more than the legal minimum wage, a spokesperson for the Federation of Small Business (FSB) has said.

Simon Briault, speaking after changes to the lowest legal hourly wage were announced by the government, said that recent changes have been "sensible" and in line with inflation.

"We, as an organisation, are in favour of the minimum wage, because it basically means that the minority of dishonest employers are not able to undercut the vast majority, who pay fairly," he said.

In the early days of the low pay commission, increases to the minimum wage tended to exceed the rate of inflation, which tended to curb small business growth, Mr Briault claimed.

However, this trend has eased and increases in the level are now fairer, he stated.

From October 2008, the national minimum wage for workers over the age of 22 will increase to £5.73 per hour, while the rate for employees aged 18 to 21 is to rise to £4.77 and the corresponding figure for 16 to 18-year-olds will become £3.53.

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Filed: 22-07-2008