However, the British Chambers of Commerce warned that the above-inflation increase would "pile further pressure" on businesses' cashflows.
Scottish Government Fair Work Minister Jamie Hepburn said he welcomed any increase to workers' hourly rate of pay, he said the announcement did "not go far enough". Now, the state is focusing on increasing the hourly rate employees are paid.
The current system of tipping disproportionally impacts the lowest-paid workers in our state: women, minorities and immigrants. Craig Beaumont, director of external affairs and advocacy at the Federation of Small Businesses, told the BBC that small firms will need support "especially as there will be a 1.7 per cent increase in business rates in April ".
It's the second in the series of five annual minimum wage hikes.
"For this policy to be sustainable, government must offset these costs by reducing others".
Boris Johnson said that the initiative will "level up" opportunities for people across the country, saying that for too long "people haven't seen the pay rises they deserve".
"But that's not all".
Barbara O'Dell, JD, an employment law analyst for Wolters Kluwer Legal & Regulatory U.S. said, however, that "increases indicate a move toward ensuring a living wage for people across several states".
On New Year's Day, 20 states and 26 cities and counties, mostly in California, will raise the minimum wages.
However, he added: "The fact that it's over 50p an hour less than originally forecast back in July 2015 shows just how disappointing typical pay growth has been over the past five years".
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The scheduled increase is part of a new law that was passed in June 2018, which sets the minimum wage to increase each year to $ 15 in 2023.
"What it really requires you to do is make sure that no one works more than 40 hours", said restaurant owner Susannah Koteen.
In September, the Chancellor, Sajid Javid, had set a new target for the NLW, calling for it to rise to two-thirds of the median United Kingdom wage, or roughly £10.5 an hour, provided economic conditions allowed that.
"This ambition is welcome but not risk-free". The measure is being implemented in phases, ultimately achieving a statewide minimum wage of $15.
UKHospitality has called on the government to deliver alternative tax reliefs to the industry to offset the increase. Some 2.6 million Californians will be due a raise in January under the new increase, according to a UC Berkeley study.
The proposal was fiercely opposed by many conservative and business groups, which argued it would compound upstate's economic woes.
For workers in the rest of NY, the minimum wage increased to $9.70 at the end of 2016, then another.70 each year after, rising to $11.10 on December 31, 2018, reaching $12.50 on December 31, 2020-after which the minimum wage will continue to increase to $15 on an indexed schedule to be set by the director of the Division of Budget in consultation with the Department of Labor, Cuomo noted.
She said: "Today's announcement will be welcome news for low-paid workers".
"Labour is calling for at least £10 per hour for all workers aged 16 and over as part of a Real Living Wage that will tackle in-work poverty and the exploitation of young workers and a 5% pay increase for public sector workers to provide a better deal for working people".