The UK Government has announced changes to National Living Wage (NLW) and National Minimum Wage (NMW) coming into effect from April 2023.
From 1 April 2023 the following increases in rates:
- a 92p, or 9.7%, increase to the NLW for those aged 23 and over (from £9.50 to £10.42 per hour)
- a £1, or 10.9%, increase for those aged 21–22 (from £9.18 to £10.18 per hour). (This increase is intended to narrow the gap with the NLW and put this age group on course to receive the full NLW by 2024)
- a 66p, or 9.7%, increase for those aged 18–20 (from £6.83 to £7.49 per hour)
- a 47p, or 9.7%, increase for those aged 16–17 (from £4.81 to £5.28 per hour), and
- a 47p increase in the apprentice rate (from £4.81 to £5.28 per hour).
These latest changes will provide much-needed support for low-paid workers at a time when many are feeling increased pressure from a rising cost of living.
Complying with national minimum wage obligations can be complicated and it is important that businesses take advice when making deductions to a worker’s pay and when a worker incurs expenses in connection with their employment. If you require any assistance or support, don’t hesitate to get in touch with Acuity Law’s employment team.