Minimum Wage (Hansard, 2 December 1997)

§ Jacqui Smith
To ask the President of the Board of Trade what is the current level of the minimum wage in EU countries, the USA and Japan in pounds sterling per hour, calculated in current exchange rates. [18567]

§ Mr. Ian McCartney
My Department does not systematically collect information on all countries. What information is available, is set out in the following table:

1997 local currency minimum wages in selected countries and their pounds sterling hourly equivaent converted at current exchange rates

Country Local currency rate¹ £ equivalent at 31 October 1997 current rate

Belgium 44,185 Belgian Francs per month ²4.61

France 39.43 French Francs per hour 4.02

Greece 5,746–6,321 Drachma per day ³1.61–1.77

Luxembourg 46,275–55,520 Luxembourg Francs per month ²4.33–5.79

Netherlands 2,243 Guilders per month ²4.29

Portugal 56,700 Escudo per month ²1.20

Spain 2,221 Pesetas per day ³1.16

USA 5.15 Dollars per hour 3.17

Japan 4,521–5,252 Yen per day ³2.99–3.48

¹ Local currency minimum wages as known at 28 July 1997. The definition of the minimum wage varies across countries. Also, exemptions may apply for some workers and different rates may apply for youth workers.

² Monthly rate converted to hourly rate assuming employees work 39 hour week for 49 weeks in the year.

³ Daily rate converted to hourly rate assuming employees work 7¾ hours per day.

§ Mr. Chidgey
To ask the President of the Board of Trade what representations she has received on the potential for a national minimum wage to result in wage inflation. [18104]

§ Mr. Ian McCartney
I have received a number of representations which referred to the possible effects of the National Minimum Wage, including the impact on wage inflation.

§ Mr. Chidgey
To ask the President of the Board of Trade what advice she has sought and from whom on the advantages and disadvantages of establishing a regionally varied minimum wage based on the precedents established by the wages councils. [18103]
163W

§ Mr. Ian McCartney
From 1986 to their abolition in 1993 each Wages Council, in fact, set a single minimum basic hourly rate, which applied to all adult workers covered. The Low Pay Commission will take into account regional concerns expressed in the evidence it receives when formulating its recommendation on a single national minimum rate.

§ Mr. Chidgey
To ask the President of the Board of Trade what representations have been made to the Low Pay Commission calling for the introduction of a regionally varied minimum wage; and how many of these called for a regionally varied minimum wage based on precedents established by the wages councils. [18102]

§ Mr. Ian McCartney
The Low Pay Commission is an independent body. The representations it receives are a matter for the Commission.

1997 local currency minimum wages in selected countries and their pounds sterling hourly equivaent converted at current exchange rates
Country	Local currency rate¹	£ equivalent at 31 October 1997 current rate
Belgium	44,185 Belgian Francs per month	²4.61
France	39.43 French Francs per hour	4.02
Greece	5,746–6,321 Drachma per day	³1.61–1.77
Luxembourg	46,275–55,520 Luxembourg Francs per month	²4.33–5.79
Netherlands	2,243 Guilders per month	²4.29
Portugal	56,700 Escudo per month	²1.20
Spain	2,221 Pesetas per day	³1.16
USA	5.15 Dollars per hour	3.17
Japan	4,521–5,252 Yen per day	³2.99–3.48
¹ Local currency minimum wages as known at 28 July 1997. The definition of the minimum wage varies across countries. Also, exemptions may apply for some workers and different rates may apply for youth workers.
² Monthly rate converted to hourly rate assuming employees work 39 hour week for 49 weeks in the year.
³ Daily rate converted to hourly rate assuming employees work 7¾ hours per day.