The National Minimum Wage and National Living Wage increased in April 2023, with the National Living Wage seeing its biggest increase since it was first introduced in 2016. Employers across the UK need to prepare for these increases to ensure all employees are paid in line with the new legislation.
Statutory sick pay, maternity, adoption, paternity and shared parental pay rates also increased in April 2023, along with increases to employment tribunal limits.
The minimum wage an employee should get depends on their age and whether they’re doing an apprenticeship. The National Living Wage is higher than the National Minimum Wage, and workers would receive this if they’re aged 23 or over.
From 1 April 2023, the new rates are as follows:
|
|
Rate from April 2023 |
Increase from 2022 (£) |
Increase from 2022 (per cent) |
|
Ages 23 and over (NLW) |
£10.42 |
0.92 |
9.7 |
|
Ages 21-22 |
£10.18 |
1.00 |
10.9 |
|
Ages 18-20 |
£7.49 |
0.66 |
9.7 |
|
Ages 16-17 |
£5.28 |
0.47 |
9.7 |
|
Apprentices* |
£5.28 |
0.47 |
9.7 |
*There are different rates of pay for apprentices depending on their age and what year of their apprenticeship they are in. The rate mentioned in the above table applies to apprentices that are either aged under 19, or aged 19 or over and in their first year of their apprenticeship.
The UK government website offers a calculator tool to help you check that you’re paying the correct minimum wage or if you owe a payment from the previous year. If you’re currently a Tate client, your account manager would work with you to ensure that all vacancy pay rates are advertised at the relevant minimum wage rates or higher. There are repercussions for employers who do not implement these changes in the form of fines and court orders by the HMRC.
From 2 April 2023, SSP will rise from £99.35 a week to £109.40 a week. Employees may be offered SSP up to 28 weeks. This is the minimum amount that eligible employees could receive, however you could offer employees more if you have a company sick pay scheme. SSP is paid when an employee is sick for at least 4 days in a row (including non-working days).
You can use the UK government’s SSP calculator if you need help with working out actual amounts or daily rates.
New statutory maternity, paternity, adoption and shared parental pay rates come into effect from 2 April 2023. These rates will increase from £156.66 to £172.48 a week.
You can use the UK government’s maternity, paternity and adoption calculator to work out an employee’s SMP, paternity pay or adoption pay.
On 6 April 2023, the latest round of annual increases relating to the maximum awards available at employment tribunals came into effect – perhaps not unsurprisingly given the current inflationary environment. Under the Employment Rights (Increase of Limits) Order 2023, the following figures apply from 6 April 2023:
Statutory pay rates increased in April and all employers need to ensure that they’ve prepared for the changes. As part of our passionate, professional and personal service, we work closely with our clients to help communicate and implement these changes for our candidates.
If you’re a Tate client and have any questions about these rate increases, contact your account manager for more information. If you’re new to Tate, learn more about our services.
