UNION

Millions would be £7,500 better off if NMW kept pace with bosses' salaries

Printable PDF
01 Apr 2019
Press Office

Press Office

Millions of workers would be more than £7,500 per year better off if the National Minimum wage had increased as the same rate as bosses’ pay, investigation by GMB reveals.

The union conducted the analysis on the 20th anniversary of the introduction of the National Minimum wage.

If statutory pay had kept pace with the average pay of FTSE100 CEOs, it would now be a whopping £11.41 an hour – or more than £23,700 a year. 

That would be £3.24 per hour higher than at present for those workers aged 25 or older, which represents an additional £6,655 per year for a worker on 40 hours per week – or £7,570 more for workers aged 21-24.

“No one should work hard all week and still be trapped in poverty. It’s a national scandal and it makes no economic sense. 

Tim Roache, GMB General Secretary

The national minimum wage (NMW) today rises to £8.21 per hour for over 25s.

The figures were calculated using High Pay Centre figures showing FTSE 100 CEO average pay is now £3.9million a year – compared to £1.23 million when the NMW came in – an increase of 217%. 

 

Share on Facebook

Tim Roache, GMB General Secretary, said:

“The introduction of the national minimum wage by a Labour government was a hugely important step for working people in this country but as our investigation shows, it’s been allowed to wither on the vine while bosses’ pay has sky rocketed. 

“No one should work hard all week and still be trapped in poverty. It’s a national scandal and it makes no economic sense. 

“People on the minimum wage don’t squirrel their money away in tax havens - they spend it in local shops and on the high street which benefits the real economy.

“It’s time for Ministers to get serious on low pay, 20 years down the line we need to make sure the minimum wage is enough for people and families to live on without having to rely to food banks or resort to borrowing from pay day lenders.”

Related news

 
Join more than 600,000 people and become a GMB member today
Join Us!