The Government has announced the changes that will be made to the National Minimum Wage and National Living Wage. These changes will come into force from April 2023.
The changes seek to increase both rates in line with advice of the Low Pay Commission (LPC).
Employers should be aware of the following changes that will come into effect from 1 April 2023:
- The National Living Wage, which applies to workers aged 23 and over, will increase from £9.50 to £10.42 per hour;
- The National Minimum Wage, for those aged 21-22, will increase from £9.18 to £10.18;
- The National Minimum Wage, for those aged 18-20, will increase from £6.83 to £7.49;
- The National Minimum Wage, for those aged 16-17, will increase from £4.81 to £5.28;
- The apprentice rate will also increase from £4.81 to £5.28.
The Government has emphasised the desire to increase the NMW for those aged 21-22 to bring it closer to the NLW, with the aim of bridging the gap entirely by 2024.
The LPC has acknowledged the changes that will come into effect from 2023, noting that they provide a support to low-paid workers at a time when many are under increasing pressure due to the cost of living and rising prices.
Employers should ensure that they are prepared to comply with the changes that will come into effect from April 2023, in order to avoid claims for unlawful deductions from wages and being forced to pay out lump sums of money to make up any shortfalls in wages.