WORKERS’ pay has “withered on the vine” in comparison to corporate bosses, unions say today on the 20th anniversary of the minimum wage.

The minimum wage would now be £11.41 an hour if it had increased at the same rate as chief executive pay, the GMB analysis shows.

The findings come as around 1.8 million workers will receive a pay rise today as the national living wage increases by almost 5 per cent.

Hourly rates for adults go up from £7.83 to £8.21.

Business minister Kelly Tolhurst claimed that this was the biggest ever rise in the minimum wage and will be worth approximately £690 a year.

She said: “Our minimum wage rates are among the highest in the world and, through our modern industrial strategy, we are determined to end low pay and ensure workers get a fair day’s pay for a fair day’s work.”

However, the Trades Union Congress (TUC) and GMB have said that young workers will not benefit so much from the raise due to the lower rates for their age group.

The rate of pay for 21 to 24-year-olds will go up from £7.38 to £7.70, but it will only rise from £5.90 to £6.15 for 18 to 20-year-olds.

TUC general secretary Frances O’Grady said: “Unions played a key role in winning the minimum wage at a time when many were warning that it would bankrupt the country, but as we mark its 20th anniversary today, we can see there’s still more to be done.

“Young workers are still getting a raw deal on pay. Their bills aren’t any cheaper, but they have to make ends meet with less.

“With in-work poverty rising, we need to make the minimum wage fit for the future by raising it to £10 as soon as possible.”

GMB national secretary Tim Roache said: “No-one should work hard all week and still be trapped in poverty. It’s a national scandal and it makes no economic sense.

“People on the minimum wage don’t squirrel their money away in tax havens — they spend it in local shops and on the high street which benefits the real economy.

“It’s time for ministers to get serious on low pay, 20 years down the line we need to make sure the minimum wage is enough for people and families to live on without having to rely on foodbanks or resort to borrowing from pay day lenders.”

Living Wage Foundation director Katherine Chapman said: “The increase in the government minimum wage will provide a welcome boost for low-paid workers, but this is still over £1,500 a year short of a real living wage.

“Around six million workers are now paid less than the living wage and are struggling to keep their heads above water.

“The only way to close the gap is for more businesses to step up and commit to a wage that covers the cost of living.”