According to the data collected and calculated by The Resolution Foundation, raising the minimum wage in the UK to £7.20, will only over burden employers by an insignificant 0.2%.
The wage bill in the UK will experience an increase of a mere 0.6% by 2020 when the rates are slated to be revised to a total of £4.5 billion if one is to go by the figures of the noted think tank.
Sectors that Are Likely to be The Most Hit
Sectors like health, education, construction and manufacturing are unlikely to witness a significant rise in costs though firms involved in social care may face challenges that are likely to be significant according to the report.
Uncertainty Looms Large
But the report also categorically stated that it was uncertain how the affected sectors would respond to the changes in terms of employment.