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|
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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