Minimum Wage Would be £26,000 If Pay Matched Executives

GMB Union has published a report which highlights the shocking gap between the earnings of top executives and the wages of the worst paid workers. The disparity in pay is so great that those at the bottom of the wage ladder could be earning an additional £5.24 per hour if their pay had risen at the same rate over the last 20 years as the pay of FTSE 100 chief executives.

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shareprices.com - Sunday, December 31, 2017

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The year 2018 will be the 20th anniversary of the legislation that saw the introduction of the minimum wage. Research by the GMB Union shows just how much the statutory pay floor has, to date, failed to rise alongside executive earnings.

The minimum wage for those over the age of 25 is currently £7.50 an hour. If pay rates had increased in parallel with those of chief executives, then it should have been £12.74 an hour, which works out to almost £12,000 more than people are currently paid.

The disclosure intensifies the debate about the gap between those who are best paid and those who are worst paid. Chief executives of FTSE 100 companies are currently earning on average more than 94 times the amount of the typical employee. The average FTSE 100 cmpany chief has seen an 11 percent rise in median total pay in just 2015-2016, and now earns £4.35 million per year - compared to £1.23 million when the national minimum wage was first introduced - that’s an increase of 354 percent.

 

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