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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