Automatic Uprating of the Minimum Wage. Without uprating the minimum wage loses its value as a floor on wages. However, automatic uprating has been resisted, partly on the grounds that it will be inflationary. Sanjiv Sachdev argues for an automatic uprating mechanism - stating it will be better at maintaining standards of living for the low paid and that it will be easier for businesses to prepare for small regular increases. He points to the experience of the US where the level of the minimum wage is the subject of intense political bargaining. In contrast France's salarie minimum interprofessionnel de croissance has been very effective in maintaining the value of the minimum wage in relation to average earnings.

By Catalyst, UK.

Employment Policy Resource.