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Tuesday, 28 March 2023 09:38
Rise in National Minimum and Living Rates - April 2023
Written by Kayleigh
As we have all seen the UK took an economic hit following the COVID-19 pandemic and are currently seeing the financial strain it has on the UK population. The cost of living crisis has seen prices rise across the board and with this the Government has increased the National Minimum wage to aim to protect the living standards of low-paid workers and support the economic recovery from the pandemic.
What is the National Minimum Wage and National Living Wage?
The National Minimum Wage Act 1998 creates a minimum wage across the United Kingdom, it is the minimum pay per hour almost all workers are entitled to.
The National Living Wage is higher than the National Minimum Wage - workers get it if they’re over 23. It does not matter how small an employer is, they still have to pay the correct minimum wage.
What is the new National Minimum Wage?
The National Living Wage will consist of an hourly rate of £10.42, the rate for 21-22 year olds will be £10.18, for 18-20 year olds £7.49 and for 16-17 year olds it will be £5.28.
The UK government has announced a 92 pence increase in the National Living Wage to £10.42 from 1 April 2023. This is the largest ever cash increase in the NLW and will benefit around 2.5 million workers. The government has also accepted the recommendations of the Low Pay Commission to increase other minimum wage rates for 2023. These include the rates for workers aged 21 to 22, 18 to 20, 16 to 17, and apprentices, as well as the accommodation offset. This 9.7% increase is the largest ever increase to the NLW. Changes to the other National Minimum Wage (NMW) rates can be found on GOV.UK (Minimum wage rates for 2023 - GOV.UK (www.gov.uk)
Paying the NMW can be more complex than just paying your workers the right rate. Some common causes of underpayment include:
- deductions and payments
- unpaid working time
- incorrect use of the apprenticeship rates
Would you like more advice on the National Minimum and Living Wage? Contact our team today to let us help you.
admin@busybeerecruitment.co.uk / 01353880253
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