Employers should be aware of changes to the National Living Wage (NLW) and National Minimum Wage (NMW) that will take effect from 1 April 2023.
These new rates will require employers to update their payroll information and ensure they are paying the correct amount to employees from that date.
- Ages 23 and over - The National Living Wage will increase to £10.42 per hour (up 92p from £9.50 - 9.7%)
- Ages 21 to 22 - This will increase to £10.18 per hour (up £1 from £9.18). This 10.9% increase is designed to reduce the gap between this rate and the NLW with the intention of those aged 21 to 22 receiving the full NLW by 2024.
- Ages 18 to 20 - This will increase to £7.49 per hour (up 66p from £6.83 - 9.7%)
- Ages 16 to 17 - This will increase to £5.28 per hour (up 47p from £4.81 - 9.7%)
- Apprentices - This will increase to £5.28 per hour (up 47p from £4.81 - 9.7%)
Accommodation offset
The ‘accommodation offset’ (the maximum amount an employer who pays minimum wage and who provides live-in accommodation to staff is allowed to deduct from daily pay) increases from £8.70 per day to £9.10 per day. (4.6%)
If you have any questions regarding the NLW, the NMW or updating your contracts, please contact us.
