National Minimum Wage Rates 2023 (UK)
From 1st April 2023 the national living wage (NLW) and national minimum wage rates (NMW) all increased. The new rates are now as follows:
- For those aged 23 & over – NLW rises to £10.42 per hour (Note this used to apply to only those aged 25 and over)
- For 21 and 22 year olds the rate will be £10.18 per hour
- For those aged 18 – 20 it will be £7 .49 per hour
- For those under 18 it will be £5.28 per hour
- The apprentice rate will rise to £5.28 per hour.
The ‘accommodation offset’ (the maximum amount an employer who pays minimum wage and who provides live-in accommodation to staff is allowed to deduct from daily pay) increased to £9.10 per day.
Other statutory rates from 6th April 2023
The rate for statutory maternity, paternity, adoption, shared parental and parental bereavement pay will increase to £172.48 per week. The rate for statutory sick pay (SSP) will increase to £109.40 per week.
NMW per pay period
The NLW/NMW applies to each and every pay period. For example, if a worker is weekly paid, they must receive at least the minimum wage for the hours worked in a week, if they are monthly paid, it must apply on average to the hours worked in that month. It is not permissible for higher earnings in one pay period to balance out earnings below the minimum wage in the next.
Accommodation offset is for accommodation, nothing else
The accommodation offset, the amount by which the average pay may be lowered below the applicable minimum wage, applies only to accommodation. An offset is not allowed for the cost of utilities, council tax, uniforms, tools or anything else.
HR support for employers
Our HR support services include national minimum wage advice and guidance. All of our retained HR outsource packages contain support hours which can be used for audit purposes, or to help employers develop a salary and benefits strategy for their organisations. Our HR support services covers charities and not-for-profits as well as commercial companies across sectors.
If you’re thinking of outsourcing your HR or employment law needs, why not contact myHRdept? Call us on 01628 820515 to discuss your requirements or contact us and we’ll call you back.