Chancellor Jeremy Hunt has recently announced his Spring Budget, and the National Living Wage and National Minimum Wage is set to increase from April 2023.
With the changes made being expected, we saw the Government implement the recommendations of the Low Pay Commission (LPC). Chair of the LPC, Bryan Sanderson, said: “The rates announced include the largest increase to the NLW since its introduction in 2016.”
This is an increase of 9.7% to 10.9% across the categories, which is intended to support the living standards of lower paid workers in light of the cost-of-living crisis.
The National Living Wage for individuals 23 and over is set to increase 9.7% to £10.42 per hour – which will be a rise of 92p.
The Government say this represents an increase of over £1,600 to the annual earnings of a full-time worker on the NLW and is expected to benefit over 2 million low paid workers.
From April 1st 2023, the National Minimum Wage and National Living Wage rates are as follows:
- National Living Wage (23+) to increase from £9.50 to £10.42
- National Minimum Wage (21-22) to increase from £9.18 to £10.18
- National Minimum Wage (18-20) to increase from £6.83 to £7.49
- National Minimum Wage (16-17) to increase from £4.81 to £5.28
- Apprenticeship Wage to increase from £4.81 to £5.28
As always, there are a few rules to follow with apprentices only entitled to the rate if they are either aged 19 or under, or aged 19 and over and in their first year of apprenticeship.
It’s a criminal offence for employers to not pay someone the National Minimum Wage or National Living Wage, or to fake payment records, so, it’s vital you implement the changes from 1st April 2023.
A few steps to avoid falling foul of the latest changes are:
For more details and guidance on the National Minimum Wage and National Living Wage, visit: https://www.gov.uk/national-minimum-wage-rates