The British Chambers of Commerce (BCC) has called for a freeze on the national minimum wage (NMW) level until the economy picks up.
It says that businesses cannot afford the uplift at present and wants the Low Pay Commission to recommend the freeze.
The BCC has calculated that another increase in the NMW at the same amount as that of 2008 would cost businesses £300 million and risk adding to unemployment levels. The NMW was increased last year to £5.73 per hour for workers aged over 22.
Director General of the British Chambers of Commerce, David Frost, said: "We are not opposed to the minimum wage going up when employment is high and the economy is doing well, but when jobs are being lost daily and a recession is in full swing, it makes no sense to increase the NMW.
"Most businesses are prioritising survival at the moment. A rise in minimum wage would not help firms hold onto staff and would simply add to unemployment."