Legal update – National Living Wage update
The Legal & HR Team would like to remind members of the increase to national minimum wage rates coming into effect on 1 April 2023. The government have accepted the Low Pay Commission’s proposed increased to the national living wage (NLW) and the national minimum wage (NMW). In particular, the 9.7% increase to the NLW will impact over 2 million workers in the UK.
|Age||New Rate||Old Rate|
|23 and over (NLW)||£10.42||£9.50|
|21 – 22||£10.18||£9.18|
|18 – 20||£7.49||£6.83|
|16 – 17||£5.28||£4.81|
|Accommodation offset amount||£9.10||£8.70|
This is the largest increase the government has ever made to NMW/NLW rates. It is recommended organisations spend some time ensuring their rates of pay do not fall short of the new minimum rates. Common issues which result in underpayment include:
- Deductions from pay
- unpaid working time
- incorrect use of the apprenticeship rates
For more information, please see the government website. As always, the Legal & HR Team at Scot Eng are happy to answer any queries you may have regarding the new rates of pay.