- January 4, 2023
- Posted by: Hannah Ingram
- Categories: Legislation Updates, Pay, Reward & Benefits
National Minimum Wage Increase
From the Spring of 2023 low paid workers will see an increase in their wages as announced in the Autumn Budget.
This is welcome news for lower bracket earners who are feeling the full effects of the cost-of-living crisis.
Here’s a rundown of the NLW (National Living Wage) and NMW (National Minimum Wage) changes.
- NLW will see a 9.7% increase to £10.42 an hour for people 23 and over.
This threshold is expected to fall to those over 21 in future, benefitting more than 2 million workers on lower pay who will see a £1,600 increase per year when working full time.
Here are the changes to the NMW (National Minimum Wage) rates from April 2023.
- 23+ will rise to £10.42 (up 9.7%)
- In 21-22 years to £10.18 (up 10.9%),
- 18-20 years to £7.49 (up 9.7%)
- 16-17 years to £5.28 (up 9.7%)
- Apprentice rate is now £5.28 (up 9.7%)
- Accommodation offset rate is £9.10 (up 4.6%).
You can explore more updates from the Autumn Budget in our Autumn Budget blog.
What is the Living Wage?
The Living Wage and the National Living Wage are different from each other.
The Living Wage Foundation sets the Living Wage based on the cost of living with over 11,000 UK employers voluntarily choosing to pay their staff this rate. The rates vary from London-based and a general UK rate, to cater for the difference in living costs in the capital.
The UK Living Wage is £9.90 an hour outside of London and £11.05 an hour in London for 2022/2023.
Increase in Statutory Pay Rates
HMRC has released rates for 2023/24 for long-awaited areas of payroll – including sickness and parental leave.
Statutory maternity, paternity and sick pay rates will increase 10% from 6th April 2023.
The rate for the 2023/2024 period for statutory maternity (SMP), adoption (SAP), paternity (SPP), parental bereavement (SPBP) and shared parental pay (ShPP) will see an increase from £156.66 per week to £172.48.
In addition the rate of statutory sick pay SSP will see an increase from £99.35 per week to £109.40.
There is a minimum weekly amount an individual must earn for payment entitlement which will remain at £123.
Struggling to keep up with all the constant payroll changes? Speak to our friendly team at Talk Staff about outsourcing in 2023 for a year of less admin and smooth processes.
Last Updated on 10 months by Hannah Ingram
