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Welfare Reform on the Web (May 2006): Minimum Wage - UK

London: TSO, 2006 (Cm 6759)

The Commission’s remit was to review their recommendations for uprating the adult and development minimum wage rates in October 2006 in the light of the present economic circumstances. They also reviewed the minimum wage rate for 16-17 year olds, the operation of the accommodation offset and the treatment of benefits-in-kind, including those offered as part of a salary sacrifice arrangement. The Commission confirmed its original recommendation that in October 2006 the adult rate of the minimum wage should be increased to £5. 35 and the youth development rate should be increased to £4.45. The 16-17 year olds’ minimum wage should be increased to £3.30. Looking forward, however, the Commission expects that no more ‘above average earnings’ increases should be required.

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