Minimum Wage – Ensure you are legally compliant with new wage rates from 1/4/2023
In the 2022 Autumn Budget the Government announced increases to the National Minimum wage, which will come into effect from 1/4/2023.
Employers will need to ensure that staff on minimum wage are given the appropriate increase in order for businesses to be legally compliant. The increase will be widely welcomed by workers, representing an increase of over £1,600 to the annual earnings of a full-time worker and is expected to benefit over 2 million low paid workers.
For many businesses however, particularly in sectors such as hospitality and tourism or where profit margins are already small, the above inflation increase at the same time as general staff shortages, rising direct costs and supply chain issues, could make all the difference to the business ongoing viability. Business owners should be taking steps to forecast through the impact of all such factors and take professional advice at an early stage.
The rates change on 1 April every year.
Rates for the National Living Wage (for those aged 23 and over) and the National Minimum Wage (for those of at least school leaving age).
|
|
23 and over |
21 to 22 |
18 to 20 |
Under 18 |
Apprentice |
|
April 2022 (current rate) |
£9.50 |
£9.18 |
£6.83 |
£4.81 |
£4.81 |
|
April 2023 (new rate) |
£10.42 |
£10.18 |
£7.49 |
£5.28 |
£5.28 |
