The new NMW and NLW rates, as recommended by the Low Pay Commission, take effect from 1 April 2023.
What are the new rates?
The following changes will be made:
| Worker | 2022 rate | New rate from 1 April 2023 |
| National Living Wage Aged 23 and over | £9.50 per hour | £10.42 per hour |
| NMW for 21 – 22 year olds | £9.18 per hour | £10.18 per hour |
| NMW for 18 – 20 year olds | £6.83 per hour | £7.49 per hour |
| NMW for 16 – 17 year olds | £4.81 per hour | £5.28 per hour |
| Apprentice rate | £4.81 per hour | £5.28 per hour |
Source: The National Minimum Wage (Amendment) Regulations 2023
Impact of the increase
It is estimated that up to 770,000 employers will be affected by the change to the minimum wage. The increase in cost is currently estimated to be around £2.5 billion. This includes implementing the wage rise, paying an uplifted wage to maintain wage differentials, and familiarisation and administration costs.
As the country grapples with one of the worst cost of living crises in recent history, marked by continued rising inflation, the increased rates will be welcomed by many lower-paid employees.
If you wish to discuss the contents of this article, or would like advice in relation to the national minimum wage, please contact a member of our team.
