The new national living wage and national minimum wage rates for the various categories of worker are as follows:
- The national living wage rate for workers aged 23 or over increases to £10.42 per hour (previously £9.50).
- The national minimum wage rate for workers aged 21 to 22 increases to £10.18 per hour (previously £9.18).
- The rate for workers aged 18 to 20 increases to £7.49 per hour (previously £6.83).
- The rate for workers who are under 18 but above the compulsory school age increases to £5.28 per hour (previously £4.81).
- The apprentice rate for workers aged under 19 or in the first year of an apprenticeship also increases to £5.28 per hour (previously £4.81).
- The accommodation offset (the maximum daily amount an employer can take into account when calculating whether the living wage or minimum wage has been paid, where accommodation is provided to a worker) increases to £9.10 per day (previously £8.70).
The large increase of 10.9 per cent in the rate payable to those aged 21-22 is because the Low Pay Commission (LPC) has recommended that they should be paid the National Living Wage by 2024. The government’s aim is therefore to phase increases in such a way as to avoid one, huge increase for them in 2024.
- 1 April 2023
- Employers should budget and prepare for the new rates, from 1 April 2023.
This article from Atom Content Marketing is for general guidance only, for businesses in the United Kingdom governed by the laws of England. Atom Content Marketing, expert contributors and ICAEW (as distributor) disclaim all liability for any errors or omissions.
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