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Minimum wage increases help protect low-paid workers’ living standards

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Minimum wage increases help protect low-paid workers’ living standards

The National Living Wage (NLW) will rise to £10.42 from 1st April 2023, an increase of 92p or 9.7%.

The Low Pay Commission’s (LPC) recommendations ensure the NLW continues on track to reach the Government’s target of two-thirds of median earnings by 2024. The recommendations were unanimously agreed by Commissioners and accepted in full by the Government.

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 increase in line with the NLW increase of 9.7% in recognition of the tight labour market and strong demand for labour in youth-friendly sectors.

From April 2023 the National Living Wage and Minimum Wages will be the following

Rate from April 2023      Current rate       (April 2022 to        Increase

                                                                            March 2023) 

National Living Wage          £10.42                  £9.50                      9.7%

21-22 Year Old Rate            £10.18                  £9.18                      10.9%

18-20 Year Old Rate            £7.49                    £6.83                      9.7%

16-17 Year Old Rate            £5.28                    £4.81                       9.7%

Apprentice Rate                  £5.28                    £4.81                       9.7%

 

Please ensure that all your staff are paid at least either the NMW or NLW depending on their age.

If you need any help with regards to this then please do not hesitate to contact our Payroll Team who can assist you

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