Increases to National Minimum Wage and National Living Wage

Increases to National Minimum Wage and National Living Wage

Introduction

In the Autumn statement on 17^th November 2022, the first under new Prime Minister Rishi Sunak, it was confirmed that the National Living Wage (NLW), paid to those aged 23 and over, will rise to £10.42 from 1^st April 2023, as recommended by the Low Pay Commission. This is an increase of 9.7 %, the largest ever increase to the NLW, and ensures that the NLW continues on track to reach the Government’s target of two-thirds of median earnings by 2024.

Further Information

Alongside the NLW, the Commission recommended significant increases in the National Minimum Wage (NMW) rates for younger workers. The 21–22-Year-old rate will increase to £10.18, narrowing the gap with the NLW and leaving this age group on course to receive the full NLW by 2024.

NMW rates for 18-20- and 16–17-year-olds and apprentices will also increase in line with the NLW increase of 9.7% to £7.49 and £5.28 respectively, in recognition of the tight labour market and strong demand for labour in youth-friendly sectors. The Accommodation Offset rate will also increase to £9.10

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Fiona Haworth

You can contact Fiona on [email protected]

If you feel that you need guidance or advice on this matter, please call Practical HR on 01702 216573 or email Fiona on the above.