The Government has announced the rates of the National Living Wage (NLW) and National Minimum Wage (NMW) which will come into force from April 2023. In doing so, it has accepted in full the recommendations of the Low Pay Commission.

By law, employers must pay the National Minimum Wage (NMW) as a minimum. The rate will be dependent on the age of the employee, or if they’re an apprentice.

  • The apprentice rate applies to people who are under 19 years of age and those aged 19 or over when undertaking the first year of their apprenticeship
  • An employee is entitled to National Minimum Wage if they are under or over the age of 23

 

As of 1st April 2021 the following rates will apply:

Category of worker                                                        Hourly rate

Aged 23 and above (national living wage rate)                     £10.42

Aged 21 to 22 Year Old Rate                                                     £10.18

Aged 18 to 20 Year Old Rate                                                     £7.49

Aged 16 to 17 Year Old Rate                                                      £5.28

Apprentices aged under 19                                                        £5.28

 

The increases announced will support the wages and living standards of low-paid workers at a time when many are feeling increased pressure from a rising cost of living. They are recommended against a backdrop of a tight labour market where unemployment is at record lows and vacancies remain high as businesses compete to recruit and retain staff.

Please see this HMRC link: Minimum wage rates for 2023 – GOV.UK (www.gov.uk)

If you need more information regarding any of the topics covered in this update or indeed any other accounting issues, please call An Accounting Gem The Tax specialist in Ipswich, Suffolk on 744700.

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