The national minimum wage is being increased from 1 April 2023 in line with the recommendations made from the low pay commission on 24 October 2022.
National living wage rates have also been upped as per the recommendations made by Bryan Sanderson from the LPC in October 2022.
The low pay commission is made up of experts, trade unions and employers and acts as an advisor to the government on the minimum wage.
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.”
Typically both the national minimum and living wage rates are raised each year giving employers the minimum legal hourly rate to pay their employees.
What are the 2023 National Minimum Wage rates?
From April 2023 to April 2024 the NMW rates are:
| AGE | NMW Rate |
|---|---|
| Under 18 | £5.28 |
| 18 to 20 | £7.49 |
| 21 to 22 | £10.18 |
| Apprentice rate | £5.28 |
Rates for under 18’s and 18 to 20’s are getting a 9.7% upturn with the 21 to 22 bracket getting more at 10.9%.
The apprentice rate is being boosted by 9.7% with a 0.47p per hour rise from 22/23 tax year.
What is the 2023 National Living Wage rate?
The national living wage is the statutory minimum wage for workers aged 23 and over. It is getting a 9.7% raise to a £10.42 hourly rate which is a .92p from the year before.
For an individual who is 23 or over working a 37.5 hour week the 9.7% increase will see them earn £149.90 more per month or £1798.83 annually.
Check your pay from April 2023
Employers are told by HMRC to use the new minimum wage rates which means in the vast majority of cases you should receive the correct hourly rate from your employer.
It’s always best checking to make sure just in case the wrong rate has been used so you can let your payroll department know so they can make an adjustment in your next pay.
