Businesses prepare for a rise in National Minimum Wage

Almost all workers in the UK are entitled to be paid at least the National Minimum Wage (NMW), or the National Living Wage (NLW) if they are aged 23 or over.

From April this year, around two million workers will get a near inflation-matching rise when new national minimum pay rates are increased.

Under the changes, the NLW will increase by 9.7 per cent to £10.42 per hour – representing an increase of nearly £1 per hour. For those aged 21 and 22, the rate is higher at 10.9 per cent.

The Low Pay Commission estimates that there were two million workers paid at or below the minimum wage in April 2020, around seven per cent of all UK workers.

The rates change on 1 April every year and for 2023/2024 they are:

April 2023 Current
National Living Wage £10.42 £9.50
21-22 rate £10.18 £9.18
18-20 rate £7.49 £6.83
16-17 rate £5.28 £4.81
Apprentice rate £5.28 £4.81

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

Am I entitled to the NMW?

The Government say almost all workers are entitled to the National Minimum Wage, including:

  • Casual workers
  • Part-time workers
  • Temporary workers
  • Agency workers
  • Workers and homeworkers paid by the number of items they make
  • Disabled workers

But if you’re self-employed or a company director, you’re not entitled to the National Minimum Wage.

The Government says these increases represent another step on the path to the Government’s target of an NLW set at two-thirds of median earnings by 2024.

Worried about the changes to the National Minimum wage or require more advice? Contact us today.

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