The National Minimum Wage (NMW) is reviewed and increased annually by the government following recommendations from the Low Pay Commission. In October 2010, the Adult NMW rose by 2.2% to £5.93.

A recent XpertHR survey quizzed a range of employers on their views on the national pay base level. Whilst findings recorded broad support for the current rate, many respondents suggested the 2010 increase should be to £6.00 per hour. This represents an increase of only 1.18%.

Whatever the government decides this year, the picture is far from clear. A significant 20% of respondents suggest the NMW level should be down to Government discretion, with 10% favouring automatic increases in line with retail price index inflation.

Since the introduction of the NMW, reports of its effectiveness have been contradictory and open to debate. While it undoubtedly sets a fair baseline and prevents exploitation, there has also been the effect of employers actually decreasing their rates of pay to meet the NMW.

What are your thoughts on the NMW?