Three in every 10 female employees in the country are set to receive pay rises due to the new minimum wage for over-25s, according to a report out today by independent think-tank the Resolution Foundation.
The measure, announced in July’s Budget, will initially be set at £7.20, 50p above the National Minimum Wage which will be £6.70 from October. It will rise to around £9.35 by 2020.
New analysis by the Resolution Foundation finds that six million people will receive some form of pay rise by the end of the decade as a result of the policy. Of these, 3.2m are expected to be earning less than the National Living Wage.
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However, the foundation estimates that a further 2.8m employees who already earn at or above the National Living Wage will also benefit from a “ripple effect”, as employers aim to maintain pay gaps.
Women are expected to account for 3.7m of those receiving a rise – 61 per cent of the total and nearly three in 10 of all female employees – because of their higher concentration among the low paid. A lower proportion of male employees will gain, with 2.3m (18 per cent) expected to see their earnings boosted.