UK workers will receive a pay rise as we see higher National Minimum Wage (NMW) rates from April 2023.

According to the Government, around two million of the UK’s lowest-paid workers will benefit from the rise in the National Living Wage (NLW) and NMW rates.

From April 2023, the NLW will increase by £0.92 per hour or 9.7% to £10.42. Whilst the NMW rates for younger workers will also increase.

Currently, the National Living Wage applies to those 23 and over. Those aged 21-22 will earn £10.18 an hour, a £1 rise, whilst 18–20-year-olds will receive £7.49 an hour, an increase of 66p.

Apprentices and 16 and 17-year-olds will receive £5.28 an hour, a 47p increase.

These rates are for the National Living Wage (for those aged 23 and over) and the National Minimum Wage (for those of at least school-leaving age).

The new rates are:

The Low Pay Commission estimates that two million workers were paid at or below the minimum wage in April 2019, around 7% of all UK workers.

Penalties for failing to meet statutory wage rates

If HM Revenue & Customs (HMRC) finds an employer fails to pay the minimum wage, HMRC can take action by:

• Requiring payment of the outstanding amount owed, going back up to six years, through the issuance of a notice
• Imposing a fine of no less than £100 per employee or worker affected and up to £20,000, regardless of the amount of underpayment.
• Pursuing legal action, including criminal proceedings
• Giving the names of businesses and employers to the Department for Business, Energy and Industrial Strategy (BEIS), which may choose to list them publicly.

If you are unsure how these changes affect paying your workforce and existing employment practices, seek professional advice from our payroll and tax advisors. You can arrange a chat with our teams here. 

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