What are the changes to the National Living Wage in 2023?

What are the changes to the National Living Wage in 2023?

There will be changes to the National Living Wage and National Minimum Wage from this April 2023. Both types of pay rate have increased, along with certain forms of statutory pay. We think this is great news for workers, especially as it times well with the Easter break. So, what’s the difference between these wage rates and how much will these increase?

What’s the difference between the National Living Wage and National Minimum Wage?
Almost all workers are entitled to the National Minimum Wage, which is the minimum rate you can be paid per hour. The National Living Wage is higher than the National Minimum Wage and applies to workers over the age of 23. If you’re an employer, then it’s important to make sure your payroll team manage these pay rates correctly.

“It does not matter how small an employer is, they still have to pay the correct minimum wage.”
Gov.uk

Increases to the National Living Wage and National Minimal Wage
The changes to wage rates vary depending on your age group, as follows:

• For those aged 23 and over, the National Living Wage will increase to £10.42 per hour. Previously, this only applied to those aged 25 and over.

• If you are aged between 21 and 22, the National Minimum Wage (NMW) will increase to £10.18.

• f you are aged between 18 and 20, the NMW will increase to £7.49.

• If you are aged between 16 and 17, the NMW will increase to £5.28.

• If you are an apprentice, the NMW rate will also increase to £5.28 but only for the first year of your apprenticeship.
  
  

Increases to statutory pay
There are also changes to certain types of statutory pay this April:

• Maternity, paternity, adoption, shared parental and parental bereavement pay will increase to £172.48 per week.

• (SSP) Statutory sick pay will increase to £109.40 per week.
  
  

How will the pay rates affect your business? Will you be revising your staffing structure? As these changes coincide with the new financial year, now’s a great time to review your human resources and budgets. Our experienced consultants work closely with major Midlands companies to help them source the right people for their business. We can help you plan and design a suitable recruitment strategy to ensure you have the right people.

Although the latest wage increases are likely to put financial pressure on businesses, this will be a welcome relief to many workers during these costly times. After all, it’s worth remembering that a happy employee is a well-paid one!

The Hiring Strategies team would like to wish all our workers, clients and business supporters a wonderful Easter. We hope you manage to enjoy some quality time with family and friends.

If you need help with your recruitment process, please speak to us. For a chat about your staffing needs, book a call with one of our friendly consultants today. Email: enquiries@hsl1uk.comto arrange a date and time.

Hiring Strategies Ltd is a professional recruitment agency, supporting leading employers across the Midlands.