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The new National Minimum Wage rates that employers will need to comply with from 1 April 2023 have been announced.
April 2023 National Minimum Wage increases
The Government has confirmed that the National Living Wage (NLW) and National Minimum Wage hourly rates will increase from 1st April 2023 as follows:
|
Age |
New Rate |
Current Rate (in place until 31st March 2023) |
|
23 or over |
£10.42 |
£9.50 |
|
21 to 22 |
£10.18 |
£9.18 (This increase is intended to narrow the gap with the NLW and put this age group on course to receive the full NLW by 2024) |
|
18 to 20 |
£7.49 |
£6.83 |
|
16 to 17 |
£5.28 |
£4.81 |
|
Apprentices |
£5.28 |
£4.81 |
The above pay increases (NMW from April 2023) demonstrate that the government has accepted the Low Pay Commission’s recommendations in full. The increases are intended to support the living standards of low paid workers and younger workers in light of the cost-of-living crisis and to further the Government’s plan for these rates to reach two-thirds of the median earnings of the relevant population demographic by 2024.
Name and Shame Penalty
In January 2021, the government released the first list of employers who were “named and shamed” for failing to pay the UK minimum wage. The Government aims to send a clear message that no employer is exempt from paying their workers the statutory minimum wage.
What should employers do?
Prepare ahead of the 1st of April 2023 by reviewing pay rates and identifying any staff that will require a pay increase. Contracts may need to be updated or side letters issued containing the relevant pay rise for Minimum Wage UK 2023.