Increases to minimum wage rates 2023
As we near the end of the tax year it’s important that employers (and employees) are aware of the increases in minimum wage and benefits that come into effect from 1 April 2023.
National Minimum Wage (NMW)
NMW is the minimum hourly rate that employers must pay to workers aged between 16 & 222 – it applies to full-time, part-time, casual, and agency workers. It also applies to some apprentices.
If apprentices are aged under 19 or 19 or over and in the first year of their apprenticeship, then the apprenticeship rate applies instead.
The national Living wage (NLW) is the minimum hourly rate that must be paid to workers aged over 23. The age this applies is dropping to 21 from April 2024.
The rates which will apply from 1 April 2023 are as follows:
|
Rate from 1 April 2022 |
Rate from 1 April 2023 |
Increase |
|
|
National Living Wage (NLW) |
£9.50 |
£10.42 |
9.7% |
|
21-22 year old rate (NMW) |
£9.18 |
£10.18 |
10.9% |
|
18-20 year old rate (NMW) |
£6.83 |
£7.49 |
9.7% |
|
16-17 year old rate (NMW) |
£4.81 |
£5.28 |
9.7% |
|
Apprentice rate |
£4.81 |
£5.28 |
9.7% |
|
Accommodation offset |
£8.70 |
£9.10 |
4.6% |
Statutory pay
Some of the rates of stator pay are also increasing.
For example, the statutory sick pay rate will increase to £109.40 per week, up from £99.35. Adoption, maternity, paternity, shared parental and parental bereavement pay will increase to £172.48 per week, up from £156.66.
These increases are good news for employees, but employers need to prepare for these increased costs at a time when all costs are rising.
If you are a client of ours, we will automatically apply the increased rates.
If you need help with running payroll, we are here to help so get in touch
SAY HELLO
t 023 9200 6466
office Address: 18 New Road, Clanfield, PO8 0NS