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New National Minimum Wage (NMW) and National Living Wage (NLW) rates

By Verity Buckingham
February 16, 2023
  • National Minimum Wage
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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:

Worker2022 rateNew 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.

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National Minimum Wage
Verity Buckingham

About Verity Buckingham

Verity is experienced in all aspects of employment law and corporate immigration matters. She deals mostly with corporate clients advising on contentious and non-contentious employment matters. Verity's contentious practice includes defending claims in the Employment Tribunal and experience of Employment Appeal Tribunal litigation in relation to claims of unfair dismissal, discrimination, equal pay and whistleblowing.

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