From April, the National Living Wage will increase by 6.7 per cent to £12.21 per hour, while the minimum wage for 18 to 20-year-olds will go up by 16.7 per cent to £10 per hour.
The increase was far higher than the UK inflation rate, which jumped from 2.5 per cent in December to a greater-than-expected 3 per cent last month amid rising food prices and VAT on private school fees.
Ramsden also highlighted a recent BoE survey revealing that employers expected average pay to grow by 3.7 per cent this year, up from previous predictions of below 3 per cent.
Yet the chances of a further reduction in the coming months appear distant; the BoE expects inflation to hit around 3.7 per cent in the third quarter, and some economists forecast it hitting 4 per cent.
At the same time, employers' National Insurance contributions will be levied at 15 per cent on staff salaries exceeding £5,000 instead of the current 13.8 per cent rate on wages above £9,100.
