National Minimum Wage increases with effect from 1 April 2023
From tomorrow, many workers in the UK are likely to see an increase to their pay slips as the National Minimum Wage (NMW), and the National Living Wage (NLW) for those aged 23 and over, increases with effect from 1 April 2023. The increases are significant, with increases of up to 9.7%.
The new rates with effect from 1 April will be as follows:
- Age 23 and over (NLW) – £10.42 per hour (currently £9.50)
- Age 21 – 22 (NMW) – £10.18 per hour (currently £9.18)
- Age 18 – 20 (NMW) – £7.49 per hour (currently £6.83)
- Age 16 – 17 (NMW) – £5.28 per hour (currently £4.81)
- Apprentice rate (NMW) – £5.28 per hour (currently £4.81)
As these increases are significant, employers may wish to review all hourly paid worker contracts to ensure that none have inadvertently fallen below the new statutory minimum levels.
Other relevant statutory rate increases include the following:
- Statutory Sick Pay - increasing from £99.35 to £109.40 per week with effect from 10 April 2023
- Statutory maternity pay (and other family leave including paternity, SPL and adoption pay) - increasing from £156.66 to £172.48 per week with effect from 10 April 2023
- Maximum statutory redundancy payment and the maximum unfair dismissal basic award - increasing from £17,130 to £19,290 with effect from 6 April 2023
- Cap on unfair dismissal compensation award - increasing from £93,878 to £105,707 with effect from 6 April 2023
Employees should be aware of the above changes and ensure that any payments made to workers and employees are in line with the new statutory rates. In particular, if any employers are currently undertaking a restructuring exercise which may result in redundancies, it should be aware of the potential significant increase in costs this process may now incur.
