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 |
| Apprentice | £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.
