UK Minimum Wage and National Living Wage increases from April 2023 for every age group
The National Living Wage (NLW) will rise to £10.42 from 1 April 2023, an increase of 92 pence or 9.7 per cent. It will be a legal requirement for all UK employers to pay their workers this new rate – if they fit in the age bracket – from April 1st workers under 23 will also see different minimum wage levels.
The announced increases will support the wages and living standards of low-paid workers at a time when many are feeling increased pressure from a rising cost of living. They are recommended against a backdrop of a tight labour market where unemployment is at record lows and vacancies remain high as businesses compete to recruit and retain staff.
Bryan Sanderson, Low Pay Commission Chair, said: “The rates announced today include the largest increase to the NLW since its introduction in 2016 and will provide a much-needed pay increase to millions of low-paid workers across the UK, all of whom will be feeling the effects of a sharply rising cost of living. For a full-time worker, today’s increase means nearly £150 more per month.”
“The tightness of the labour market and historically high vacancy rates give us confidence that the economy will be able to absorb these increases.”
“Businesses also have to navigate these economically uncertain times and by ensuring we remain on the path to achieve our 2024 target, employers will have greater certainty over the forward path.”
Alongside the NLW, the Commission recommended significant increases in the National Minimum Wage (NMW) rates for younger workers. The 21-22 Year Old Rate will increase to £10.18, narrowing the gap with the NLW and leaving this age group on course to receive the full NLW by 2024. NMW rates for 18-20 and 16-17 year olds and apprentices will increase in line with the NLW increase of 9.7% in recognition of the tight labour market and strong demand for labour in youth-friendly sectors.
| Rate from April 2023 | Current rate (April 2022 to March 2023) | Increase | |
| National Living Wage | £10.42 | £9.50 | 9.7% |
| 21–22 Year-Old Rate | £10.18 | £9.18 | 10.9% |
| 18-20 Year-Old Rate | £7.49 | £6.83 | 9.7% |
| 16-17 Year-Old Rate | £5.28 | £4.81 | 9.7% |
| Apprentice Rate | £5.28 | £4.81 | 9.7% |
| Accommodation Offset | £9.10 | £8.70 | 4.6% |
What should you do?
Ensure you are prepared for the wage increase before 1 April 2023. For existing employees and new starters, you will need to ensure that you are paying the correct rate from that point onwards and you may need to update their contracts if they don’t already comply.
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Source: https://bit.ly/3CCfbsx
