The increase in hourly rates will benefit around 2.5 million workers effective from 1 April 2023. It will add an additional circa £1,600 a year into the paychecks of full-time workers, helping to alleviate cost-of-living pressures.
Apprentices will see an increase of 9.7% in their minimum hourly rate, while those aged 21 to 22 will see the largest rise at 10.9%. Younger workers will see an additional 9.7%, and the National Living Wage, the minimum wage for anyone over the age of 23, will also increase to £10.42 per hour.
In full, the increases from 1 April 2023 are:
| April 2023 Rate | Increase £ | Increase % | |
|---|---|---|---|
| National Living Wage | £10.42 | £0.92 | 9.7% |
| 21-22 Year Old Rate | £10.18 | £1.00 | 10.9% |
| 18-20 Year Old Rate | £7.49 | £0.66 | 9.7% |
| 16-17 Year Old Rate | £5.28 | £0.47 | 9.7% |
| Apprentice Rate | £5.28 | £0.47 | 9.7% |
| Accommodation Offset | £9.10 | £0.40 | 4.6% |
NMW compliance can seem straightforward. Many employers believe that they are meeting their NMW obligations by paying the published NMW rates. However, in the event of an HMRC enquiry, it’s not just the hourly rates paid via payroll that comes under scrutiny.
For more information on how you can proactively manage your NMW compliance visit our proactive support page.