Logo of Phnom Penh Post newspaper Phnom Penh Post - Minimum wage in UK to increase, Johnson says Johnson says

Minimum wage in UK to increase, Johnson says Johnson says

Content image - Phnom Penh Post
Britain's minimum wage is to increase by more than four times the rate of UK inflation from next year, Prime Minister Boris Johnson’s government announced on Tuesday. AFP

Minimum wage in UK to increase, Johnson says Johnson says

Britain's minimum wage is to increase by more than four times the rate of UK inflation from next year, Prime Minister Boris Johnson’s government announced on Tuesday.

A 6.2-per cent increase from April takes the so-called national living wage for workers aged 25 and over from £8.21 to a minimum £8.72 ($10.79 to $11.52).

Johnson, whose Conservative party’s recent general election victory came with support from economically struggling pro-Brexit areas, said it was the biggest increase since 2016.

The new government said almost three million people would benefit from the increase.

UK annual inflation stands at 1.5 per cent, with consumers’ purchasing power under pressure from higher import prices following the EU referendum in 2016, which has weighed on the pound.

Johnson has been advised to repay the trust of voters in more disadvantaged areas, particularly in northern England, after he secured the Conservatives biggest majority since the 1980s.

The December 12 vote saw swathes of working class, traditionally left-wing Labour-supporting places, switch to the right-wing Tories because of Brexit.

During the election campaign, Johnson pledged more investment to reverse nearly 10 years of austerity measures under his predecessors.

But the British Chambers of Commerce said above-inflation pay increases came at a difficult time for hard-pressed businesses amid economic uncertainty.

“Raising wage floors will pile further pressure on cashflow and eat into training and investment budgets,” said the trade body’s co-executive director Hannah Essex.

“For this policy to be sustainable, government must offset these costs by reducing others and impose a moratorium on any further upfront costs for business.”

MOST VIEWED

  • Phnom Penh unveils rules for post-lockdown transition

    The Phnom Penh Municipal Administration issued a set of detailed guidelines for the seven days to May 12 after the capital emerges from lockdown at the onset of May 6. In the 14-page document signed by municipal governor Khuong Sreng released on the evening of May 5, the

  • SBI LY HOUR Bank Launches Cross Border Money Transfer Service between Cambodia and Vietnam on RippleNet, utilizing DLT

    SBI LY HOUR Bank Plc and Hanoi-based Tien Phong Commercial Joint Stock Bank (TPBank) on Friday launched the first Cambodia-Vietnam money transfer service in real currency via RippleNet, provided by SBI Ripple Asia Co Ltd to provide safe, fast and convenient services. SBI LY HOUR

  • Gov’t issues guidelines as lockdown nears end

    The government has issued a five-page set of instructions to be enforced when the three-week lockdown of Phnom Penh and adjacent Takmao town in Kandal province ends on May 6. According to an announcement signed by Prime Minister Hun Sen on May 4, the instructions cover a

  • Cambodia ready to exit LDC status

    Cambodia is well-prepared to minimise economic risks when it graduates from its Least Developed Countries status, according to a senior official at the Ministry of Commerce on May 7. Four LDCs – Cambodia, Laos, Bangladesh and Nepal – met at a virtual workshop last week to explore potential

  • Nine US franchises eye Cambodia debut

    Nine famous US franchising companies are looking for business opportunities and expansion into Cambodia to build a footstep for a strong foundation in Southeast Asia. The US embassy in Phnom Penh, in partnership with the US Foreign Commercial Service and with support from the American

  • Lost in translation: ‘Starvation’ in capital’s designated red zones

    “DACH bay” is a Khmer slang meaning a “loss of income”, that could also be literally translated to «deprived of rice”, which alludes to starvation. However, civil society organisation (CSO) officials have independently confirmed the government’s prior assertions that there are no cases of