National Minimum Wage and National Living Wage rates are increasing from 1 April 2023.
The National Minimum Wage is the minimum legal amount per hour (£) a business can pay an employee in the UK. This amount is constantly under review by the UK government, who adjust the figure each year in line with the cost of living. They recently announced that the next minimum wage increase in the UK will take effect from 1st April 2023. In this ultimate guide, we’ll cover everything you need to know about the National Living Wage 2023 and the National Minimum Wage 2023, including the difference between them.
Employers should be aware that all minimum wage rates increase on 1 April of each year.
See below the new rates for 2023:
23 years old and over - £10.42 ph
21 to 22 years old - £10.18 ph
18 to 20 years old - £7.49 ph
16 - 17 years old - £5.28 ph
Apprentice rate - £5.28 ph
What is the Difference Between Minimum Wage and Living Wage?
The National Minimum Wage (NMW) is the minimum hourly rate that workers under the age of 23 are entitled to if they are one of the following:
The National Living Wage (NLW) is the minimum hourly rate employers must pay workers aged 23 and over.
How can you ensure you are prepared for the changes?
Make sure you are aware of the new minimum wage rates
Check who is eligible for which rate in your organisation
Apply the rate through your payroll at the right time