National Minimum Wage Rates April 2023
The Chancellor, Jeremy Hunt, has confirmed, in his Autumn statement this afternoon, that the National Living Wage (which is the top rate of National Minimum Wage for those aged 23 or over) will be increased from £9.50 per hour to £10.42 per hour from April 2023.
The National Minimum Wage Rates for younger workers will increase as follows:
- 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.
- The rate for 18-20 year olds will increase to £7.49.
- The rate for 16-17 year olds will increase to £5.28.
- The rate for apprentices will increase to £5.28.
The 16 to 17 rate applies to workers who have not reached their 18th birthday but are above compulsory school age and are not apprentices. The apprentice rate applies to apprentices who are under 19 or are over 19 and in the first year of their apprenticeship.
While the increase will be welcome news to employees it is likely to be cause for concern for many employers who are facing soaring costs across the business.
If you are assessing costs and think you might need to reduce your headcount before the April increase takes effect, please get in touch now so I can work with you to put a plan in place that you can set in motion in time for staff to leave on or before 31 March 2023.
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