Solicitor Aoife McGrath, in our Employment Law team, outlines the new minimum wage rates that will take effect from 1 April 2023.
In the autumn statement on 17 November 2022, the Government announced increases to the National Living Wage (NLW) and National Minimum Wage (NMW), set to take effect from 1 April 2023.
The changes were expected and saw the Government implement the recommendations of the Low Pay Commission (LPC), an independent advisory body within the Department for Business, Energy and Industrial Strategy, in full.
Chair of the LPC, Bryan Sanderson, said: “The rates announced include the largest increase to the NLW since its introduction in 2016 and will provide a much-needed pay increase to millions of low-paid workers across the UK, all of whom will be feeling the effects of a sharply rising cost of living. For a full-time worker, today’s increase means nearly £150 more per month.
“The tightness of the labour market and historically high vacancy rates give us confidence that the economy will be able to absorb these increases.”
The NMW, divided into three tiers, is the minimum hourly rate that employers must pay to workers aged between 16 and 22. The NMW applies to full-time, part-time, casual and agency workers, and some apprentices. For apprentices aged under 19 and those aged 19 or over in the first year of their apprenticeship, the apprentice rate will instead apply.
The NLW is the minimum hourly rate employers must pay workers aged 23 and over. In 2024, the age threshold for the NLW will be reduced from 23 to 21.
The rates which will apply from 1 April 2023 are as follows:
|
Rate from 1 April 2022 |
Rate from 1 April 2023 |
Increase |
|
|
National Living Wage (NLW) |
£9.50 |
£10.42 |
9.7% |
|
21-22 year old rate (NMW) |
£9.18 |
£10.18 |
10.9% |
|
18-20 year old rate (NMW) |
£6.83 |
£7.49 |
9.7% |
|
16-17 year old rate (NMW) |
£4.81 |
£5.28 |
9.7% |
|
Apprentice rate |
£4.81 |
£5.28 |
9.7% |
|
Accommodation offset |
£8.70 |
£9.10 |
4.6% |
Our specialist Employment Law team can advise employees and employers on the full range of Employment Law matters.
For further information or legal advice, please contact law@blandy.co.uk or call 0118 951 6800.
This article is intended for the use of clients and other interested parties. The information contained in it is believed to be correct at the date of publication, but it is necessarily of a brief and general nature and should not be relied upon as a substitute for specific professional advice.
