Minimum & Living wage rates for 2023
The increase from April 2023 means that for a National Living Wage worker, working a 37.5 hour work week will see an increase of £149.90 to their monthly pay. The LPC acknowledged that implementing these increases will support the wages and the living standards of lower-paid workers, specifically during these times of pressure through the cost of living crisis.
What are the changes from April 2023?Following the LPC’s recommendations – the changes from April 2023 are as follows:
National Living wage (which applies to workers aged 23 and over) will increase to £10.42.
- Apprentices rate will increase to £5.28 from £4.81.
- 21-22 year-olds will see an increase to £10.18 and will soon be moved onto the National Living wage rate by 2024.
- 18–20 year-olds will increase to £7.49.
- 16-17 year-olds will increase to £5.28
National Living wage sees an increase of 9.7%, which is the largest ever increase to be made. This increase also ensures that the National Living Wage continues to be on track to reach the Government’s target of two-thirds median earnings by 2024. This supports the Government’s ambition to create a high-productivity, high-wage economy, and fairer society.
What are the National Minimum & Living Wage Rates for 2023-24? The updated rates from April 2023 are set out below:
| 23 and over | 21 to 22 | 18 to 20 | Under 18 | Apprentice | |
| April 2022 (current rate) | £9.50 | £9.18 | £6.83 | £4.81 | £4.81 |
| April 2023 | £10.42 | £10.18 | £7.49 | £5.28 | £5.28 |
What does this mean for you as an employer? You should ensure if you employ any persons who fall within these categories are transferred to the new rates.
You should also continue to keep records to show that you are paying national living wage – it is a criminal offence to fail to have these records.
Employers should also continue to follow the regulations or face having their name put into the public domain by the Government, which are prepared to ‘name and shame’ companies who do not pay minimum wage.
If you have any queries or concerns about these changes then you should speak to your advisers who can help you navigate the changes and help you to ensure you are compliant with them. For more information on how we could help you and your business, contact us using the form or call 02476673160.
Please note: This article is provided for information only and was correct as at time of writing (23/02/23). Any lists and details provided above are not exhaustive and are not intended to be full and complete guidance. No action should be taken without consulting detailed legislation or seeking independent professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this article can be accepted.
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