From October 2005 the national minimum wage will rise by 20p to £5.05 per hour for adult workers aged 22 and over, while the development rate for young people aged 18-21 will become £4.25 per hour.
Nick Jones, Retail Motor Industry Federation human resources director, said: "The Government's decision to increase the national minimum wage will affect the retail motor industry's own in-house pay agreements."
Sector wages are supervised via the National Joint Council for the Motor Vehicle Retail and Repair Industry (NJC), the industry's pay rate regulator.
Jones said: 'Negotiations on revised NJC pay rates for unindentured junior employees aged 16 and 17 years, apprentices, and adult employees will begin in November to take effect in January 2006 and these negotiations will take account of the new national minimum wage rates.'
The minimum wage will increase again in October 2006, with those aged 22 and over receiving £5.35 per hour, and 18-21 year olds receiving £4.45 per hour.
The £3 rate for 16 and 17 year olds will also be reviewed at this time.