National minimum wage and national living wage
With effect from 1 April 2023, the hourly rates of the national minimum wage (NMW) and national living wage (NLW) will change as follows:
- The NLW for workers aged 23 and over increases from £9.50 to £10.42 per hour.
- The NMW for 21 to 22-year-olds increases from £9.18 to £10.18 per hour.
- The NMW for 18 to 20-year-olds increases from £6.83 to £7.49 per hour.
- The NMW for 16 to 17-year-olds increases from £4.81 to £5.28 per hour.
- The apprentice rate increases from £4.81 to £5.28 per hour.
To put it into perspective, this means that, based on a 37.5 hour week, any salary below £20,319 would be below NLW and any salary below £19,851 would be below NMW for 21-22 year olds.
It is crucial to ensure that you are meeting NLW and NMW requirements, and that legal advice is always sought if you are unsure, as other factors can also contribute to pay, such as the purchase of tools or equipment or the cleaning or purchase of uniforms, to give a few examples. These factors should, therefore, be taken into account when calculating hourly pay and will reduce the amount of the total earnings for NMW purposes. A worker must still be left with at least NMW after these deductions and payments have been taken into account.
Statutory maternity, paternity, adoption, parental bereavement and sick pay
With effect form 10 April 2023, Statutory maternity, paternity, adoption, shared parental and parental bereavement pay will increase to £172.48 per week from the current rate of £156.66 per week.
Statutory sick pay will rise from £99.35 per week to £109.40 per week.
The weekly earnings threshold a worker must meet to become eligible for statutory parental pay or statutory sick pay will remain the same, at £123 per week.
Need help?
Reach out to us if you have any questions at all, and we can help you get it right!
? hello@peachlaw.co.uk
? Connect with us on LinkedIn – Peach Law (HR & Employment Law Specialists)
? 0161 478 3800
