In response to recommendations by the Low Pay Commission, the National Minimum Wage (NMW) is rising from 1 April 2023.
The new rates will be:
- National Living Wage (NLW) £10.42
(This will apply to anyone aged 23 and older. It used to apply to anyone aged 25 and older) - 21-22 year olds £10.18
- 18-20 year olds £7.49
- 16-17 year olds £5.28
- Apprentices £5.28
The NMW/NLW applies to each and every pay period. For example, if you pay your workers weekly, they must receive at least the minimum wage for the hours they work in a week. If you pay them monthly, it must apply on average to the hours they work in a month. Higher earnings in one pay period can’t be used to balance out earnings below the minimum wage in the next pay period.
The NNW does not apply to self-employed people, volunteers, or family members who share a common residence as their employer and complete household chores.
Other increases
The accommodation offset will increase to £9.10. That’s the maximum amount an employer who pays minimum wage and provides live-in accommodation to staff is allowed to deduct from daily pay. It applies only to accommodation. An offset is not allowed for the cost of utilities, council tax, uniforms, tools or anything else.
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.
Agricultural minimum wage
The minimum wage legislation for agricultural workers varies across the UK.
The Agricultural Wages (No.2) (Wales) Order 2022 came into force on 6 August 2022, backdated to 1 April 2022, so some employers should have made back payments to some of their employees. The Order increased some of the minimum rates of pay and aligns apprenticeship age bands with those under the National Minimum Wage.
Here are the current minimum hourly rates for Wales:
- Grade A Agricultural development worker aged 16-17 £4.81
- Grade A Agricultural development worker aged 18-20 £6.83
- Grade A Agricultural development worker aged 21-22 £9.18
- Grade A Agricultural development worker aged 23+ £9.50
- Grade B Agricultural worker aged 16-17 £4.81
- Grade B Agricultural worker aged 18-20 £6.83
- Grade B Agricultural worker aged 21-22 £9.18
- Grade B Agricultural worker aged 23+ £9.79
- Grade C Advanced agricultural worker £10.08
- Grade D Senior agricultural worker £11.06
- Grade E Agricultural manager £12.13
- Apprentice Year 1 £4.81
- Apprentice Year 2 and beyond, aged under 19 £4.81
- Apprentice Year 2 and beyond, aged 19-20 £6.83
- Apprentice Year 2 and beyond, aged 21-22 £9.18
- Apprentice Year 2 and beyond, aged 23+ £9.50
Agriculture allowances - £8.53 allowance per dog per week
- £1.62 allowance per hour of night work
- £67.09 birth/adoption allowance per child
Real living wage
The rise rises are designed to:
- Help fight against poverty
- Help people make ends meet
- Help workers fight continued issues caused by the cost-of-living crisis
- Help people keep up with the rising cost of goods
- Help foster more economic security
However, some people may think they are still not enough.
The Living Wage rates are the only rates independently calculated based on what people need to live on.
Employers can choose to pay the real Living Wage on a voluntary basis. One in 10 employees now work for an accredited Living Wage employer, and the Living Wage movement continues to grow.
The new Living Wage rates rise to £10.90 an hour across the UK (£1 increase), and £11.95 an hour in London (90p increase).
This year the UK rate has increased by 10.1% – the largest rise in 11 years since the Living Wage Foundation was founded. It reflects the sharp increases in living costs over the past year.
For more information
For help with anything to do with employment law, please contact Emma, Lowri or Paul in our corporate law department.