NATIONAL MINIMUM WAGE:
Rishi Sunak’s government has announced the highest increase to the National Minimum Wage (“NMW”) in nearly a decade due to take effect from April 2023.
The National Living Wage and the National Minimum Wage rates will increase from 1 April 2023 as follows:
National Minimum Wage
From 1st April 2023
|National Living Wage for 23 and over||£9.50||£10.42|
|National Minimum Wage for 21-22||£9.18||£10.18|
|National Minimum Wage for 18-20||£6.83||£7.49|
|National Minimum Wage for School leavers under 18||£4.81||£5.28|
|Apprentice Minimum Wage for 18-20||£4.81||£5.28|
REAL LIVING WAGE:
The increase in the NLW falls shy of the voluntary real Living Wage (calculated by the Resolution Foundation for the Living Wage Foundation) which has seen its largest increase in history. The Real Living Wage has been raised to £10.90 per hour (Nationally) and £11.95 in London. This increase of 10.1% nationally and 8.1% in London has been brought forward to reflect pressures in the cost of living. Up to 390,000 Living Wage workers who are employed by 11,000 Living Wage employers will benefit from this boost in income. The Real Living Wage calculation is based on a core “basket of goods and services” that people in the UK believe is necessary to meet everyday needs and does not vary according to the age of the worker
The voluntary Real Living Wage rates are required to be implemented by participating employers as soon as possible, but by 14 May 2023 at the latest.