Annual National Minimum Wage and National Living Wage Increases Announced

Pay Increases

Workers aged 23 and over are entitled to receive the National Living Wage (NLW).  This will increase from £9.50 per hour to £10.42 per hour. 

Workers aged 22 and under are entitled to receive the National Minimum Wage (NMW), which will increase as follows:

• The NMW of 21 to 22 year-olds will increase from £9.18 to £10.18 per hour.
• The NMW of 18 to 20 year-olds will increase from £6.83 to £7.49 per hour.
• The NMW of 16 to 17 year-olds, and the apprentice rate, will increase from £4.81 to £5.28 per hour.

Employers who fail to pay the correct NLW and NMW risk being named and shamed in a government report. This is intended to raise awareness of NMW enforcement and deter employers who would otherwise be tempted to break the law. Alongside each list of named non-compliant employers, HMRC now also publish an educational bulletin focusing on particular issues that commonly risk leading to underpayment.

The Voluntary 'Real' Living Wage

The Government-prescribed NLW and NMW must not be confused with the voluntary Living Wage, which is set by the Living Wage Foundation. The voluntary 'real' Living Wage is currently £10.90 across the UK and £11.95 in London.  That rate was set in September 2022 and the Living Wage Foundation asks that Living Wage employers ensure their staff are being paid at those rates by 14 May 2023 at the latest.

For more information, please contact Gareth Edwards in our Employment team on 0117 314 5220, or complete the form below.