31/03/2023

Minimum Wage Rise 1st April 2023

Summary for Employers

The National Minimum Wage (NMW) and National Living Wage (NLW) are set to increase on the 1st of April 2023 to £10.42 an hour, an increase of 92 pence or 9.7 per cent.

The increase will see the biggest increase since the NMW was introduced in 2016.

The new minimum wage rate

From 1 April 2023, the hourly minimum wage rate is:

  • £10.42 for workers aged 23 and over (the National Living Wage).
  • £10.18 for workers aged 21-22.
  • £7.49 for workers aged 18-20.
  • £5.28 for workers aged 16-17.
  • £5.28 for apprentices aged 18 or under and for apprentices of any age who are in the first year of their apprenticeship. All other apprentices must be paid the minimum wage rate for their age.

Who is entitled to receive the National Minimum Wage

Workers that are under the age of 23 are eligible to the National Minimum Wage (NMW), which is the lowest hourly rate, if they fall under one of categories below:

  • full-time employee
  • a part-time employee
  • casual employee
  • agency employee
  • apprentice, in some instances.

Employers are required to pay employees aged 23 and above at least the National Living Wage.

Calculating wages

Even if you are paying workers the minimum wage or above, you could still be underpaying them if you don’t make deductions and payments correctly. For information and help on the payments and deductions which must be considered when calculating a worker's pay for minimum wage purposes, go to www.gov.uk/guidance/calculating-the-minimum-wage/calculating-the-minimum-wage

 

Further information and guidance can be found at:

HMRC – Information and webinars  Help and Support for Employing People

You can register and watch a pre-recorded HMRC webinar here

Acas (Advisory, Conciliation and Arbitration Service) provides information, advice and training about workplace issues, including payment of the National Minimum Wage. 

The Living Wage Foundation offers accreditation to employers that choose to pay the Living Wage.

 

Contact Hertfordshire Growth Hub’s Business Information Advisers should you require further support by calling 01707 952777 or emailing enquiries@hertsgrowthhub.com

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