National Living Wage (NLW) rates (for those over 23 years old) and National Minimum Wage (NMW) rates (for those under 23 years old) will rise from 1 April 2023.
The NLW increase of 92p represents a 9.7% rise, equivalent to an annual increase of around £1,670 for a full-time worker.
In summary, effective 1 April 2023, the following minimum wage rates will apply:
Ensure your payroll procedures are up to date and consider notifying staff ahead of time in writing (even via a note on their payslip). This transparency is likely to be well received and could help build positive employee relations. It also offers an opportunity to explain that any overtime worked during a pay reference period before introducing the new rates (even if payable after these have been introduced) will be paid at the previous rate. For further details and more rates visit gov.uk
Pension contribution rates
If you employ staff and run a pension scheme, the minimum contributions rates remain the same with no more planned increases:
Employer minimum pension contribution 3% and staff contribution 5%
*Apprentices: are entitled to the apprentice rate if they’re either:
aged under 19
aged 19 or over and in the first year of their apprenticeship
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