National Living Wage increase

National Living Wage increase

The Government have announced that there will be a National Living Wage increase in the new tax year.

From the 1st of April 2023 the rate for workers aged 23 years and over will go up by 9.7% to £10.42.

This 92p increase is the largest ever cash increase to the National Living Wage. Changes to the other National Minimum Wage (NMW) rates including % increases are detailed below.

National Living Wage 2022 rate 2023 rate % Nominal increase Cash increase
23 Year old and over £9.50 £10.42 9.7% 92p
21 to 22 Year old £9.18 £10.18 10.9% £1
18 to 20 Year old £6.83 £7.49 9.7% 66p
Under 18 Years £4.81 £5.28 9.8% 47p
Apprentice £4.81 £5.28 9.8% 47p
Accommodation offset £8.70 £9.10 4.6% 40p

Paying the National Minimum Wage can be more complex than just paying your workers the correct rate. These are just a few of the risks and common causes of underpayment:

  • deductions and payments for items or expenses that are connected with the job
  • unpaid working time for example, team handovers between shifts or time spent passing through security checks on entry and exit
  • incorrect use of apprenticeship rates for example, paying the minimum wage apprentice rate when the worker is not a genuine apprentice, or paying the minimum wage apprentice rate before a worker starts their apprenticeship, or after it ends

Further information and guidance is available on calculating the minimum wage.

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