Employers will face fines of up to £5,000 per offence for non-compliance with the new national minimum wage which comes into force this Wednesday.

The Trades Union Congress (TUC) claims one million workers will benefit from the raise of 19p to £5.73 for those over the age of 22.

The lobby group expects two-thirds of the beneficiaries of the wage increase to be women, helping further narrow the gender pay gap.

The minimum wage will increase from £4.60 to £4.77 an hour for 18-22 year-olds and from £3.40 to £3.53 for 16 and 17 year-olds.

Despite current economic conditions, the TUC’s general secretary Brendan Barber urged the Low Pay Commission to recommend a “significant” increase in the minimum wage for next year.

“The increase in the minimum wage will help thousands of families but the low-paid face a high inflation rate as they spend a much greater proportion on food and energy where prices have rocketed.”

Barber expects to face criticism from business lobby groups but says their fears are unfounded. “It is entirely predictable that some employer groups will say that the minimum wage increase will threaten jobs, yet it has helped millions without significant job losses.”

© Crimson Business Ltd. 2008