The Confederation of British Industry (CBI) has called for the next minimum wage rise to be more modest, to avoid squeezing pay differentials any further.
According the organisation, the increase in minimum wage this year means the UK has the third-highest in the world.
Only France and Australia have higher minimum hourly pay, the CBI stated.
The CBI’s deputy director general John Cridland commented that pay rises must stay relevant.
"Employers are in favour of a minimum wage which stays relevant and enables those at the lowest end of the labour market to maintain their standard of living, but the increases must always remain affordable for the whole economy," he remarked.
The minimum wage is now £5.52, which is a 53 per cent rise since its introduction in 1999 compared to a 38.3 per cent rise in average earnings growth.
In other news, the CBI has called for chancellor Alistair Darling to recognise small businesses and entrepreneurs in his pre-Budget report.
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