The National Minimum Wage and National Living Wage will be increasing this April 2023, offering workers aged 16 and over a higher hourly wage. As a busy Hiring Manager, you’ll need a quick summary of the changes and how this could affect your business. 
The changes come into effect on April 1st, 2023 and will affect millions of employees in the UK. This means that employers will have to ensure they have the funds to pay the new rates, as they will be legally obligated to do so. The increase in pay rates could be a positive for businesses as it could help to reduce staff turnover and reduce recruitment costs, as well as improving morale and motivation. It could also lead to increased productivity and customer service as employees may feel more appreciated and engaged. However, there are some potential negative impacts for businesses, such as the additional costs associated with the increase in wages. Employers may also need to review their pricing and cost structures to ensure they remain competitive. Overall, the National Minimum Wage and National Living Wage increase is set to benefit both employees and employers. It is important that employers get prepared for the changes and ensure they can meet the increased wages when they come into effect. 
The Government has confirmed that the National Living Wage (for over 25-year-olds) will increase by 9.7% from £9.50 to £10.42. However, the National Minimum Wage will rise across all age groups, including: 
Rate from April 23 
Current rate (April 22 - March 23) 
National Living Wage 
21–22-Year-Old Rate 
18–20-Year-Old Rate 
16–17-Year-Old Rate 
Apprentice Rate 
Accommodation Offset 
The Low Pay Commission’s (LPC) recommendations ensure the NLW continues on track to reach the Government’s target of two-thirds of median earnings by 2024. The recommendations were unanimously agreed by Commissioners and accepted in full by the Government. 
The increases announced in November 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. 
Bryan Sanderson, Low Pay Commission Chair, said: 
'The rates announced today include the largest increase to the NLW since its introduction in 2016 and will provide a much-needed pay increase to millions of low-paid workers across the UK, all of whom will be feeling the effects of a sharply rising cost of living. For a full-time worker, today’s increase means nearly £150 more per month. 
The tightness of the labour market and historically high vacancy rates give us confidence that the economy will be able to absorb these increases. 
Businesses also have to navigate these economically uncertain times and by ensuring we remain on the path to achieve our 2024 target, employers will have greater certainty over the forward path. 
These recommendations have the full support of the business, trade union and academic representatives who make up the Commission.' 
Alongside the NLW, the Commission recommended significant increases in the National Minimum Wage (NMW) rates for younger workers. The 21–22-Year-Old Rate will increase to £10.18, narrowing the gap with the NLW and leaving this age group on course to receive the full NLW by 2024. NMW rates for 18-20 and 16–17-year-olds and apprentices will increase in line with the NLW increase of 9.7% in recognition of the tight labour market and strong demand for labour in youth-friendly sectors. 
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