The Government has announced the rates of the National Living Wage (NLW) and National Minimum Wage (NMW) which will come into force from the 1st April 2023.
The rates which will apply from 1 April 2023 are as follows:
|Employee age/status||Current 2022 rate||From 1st April 2023 rate||Increase per hour||Percentage increase|
|21 – 22||£9.18||£10.18||£1.00||10.9%|
|18 – 20||£6.83||£7.49||66p||9.7%|
|16 – 17||£4.81||£5.28||47p||9.7%|
The minimum wage a worker should get depends on their age and if they’re an apprentice.
The National Minimum Wage is the minimum pay per hour all workers are entitled to. The National Living Wage is higher than the National Minimum Wage – workers get it if they’re over 23.
It does not matter how small an employer is, they still have to pay the correct minimum wage.
The increases will support the wages and living standards of low-paid workers at a time when many are feeling increased pressure from a rising cost of living. They are recommended against a backdrop of a tight labour market where unemployment is at record lows and vacancies remain high as businesses compete to recruit and retain staff. These changes can also put extra pressure on small businesses that may already be struggling. Increased cost to your business in wages, Employer’s National Insurance and Employer’s pension contributions.
The National Living Wage (NLW) is the statutory minimum wage for workers aged 23 and over. Different minimum wage rates apply to 21-22 year olds, 18-20 year olds, 16-17 year olds and apprentices aged under 19 or in the first year of an apprenticeship.
Following LPC (Low Pay Commission) recommendations in 2019, the age threshold for the NLW was lowered from 25 to 23 in April 2021 and is due to be lowered to 21 by 2024.
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