What are the minimum wage rates from April 2023?
As an employer, you are probably already aware that all minimum wage rates increase in April of each year and this year is no exception. National Minimum and National Living Wage rates will all see increases of around 10% from 1 April 2023.
When calculating minimum wages certain payments must be included. These are:
- Income Tax and National Insurance contributions
- Wage advances or loans
- Repayment of wage advances or loans
- Repayment of overpaid wages
- Things the worker paid for that are not needed for the job or paid for voluntarily, such as meals
- Accommodation provided by an employer above the offset rate (£8.70 a day or £60.90 a week)
- Penalty charges for a worker’s misconduct
What are the current minimum wage rates and new rates from April 2023?
Current rate (since April 2022) | New rate from April 2023 | Increase | |
National Living Wage (23 years old and over) | £9.50 | £10.42 | 9.7% |
National Minimum Wage adult rate (21-22 years old) | £9.18 | £10.18 | 10.9% |
(18-20 years old) | £6.83 | £7.49 | 9.7% |
(16-17 years old) | £4.81 | £5.28 | 9.8% |
(apprentice rate) | £4.81 | £5.28 | 9.8% |
Accommodation Offset | £8.70 | £9.10 | 4.6% |
If you discover you’ve paid a worker below the correct minimum wage, you must pay any arrears immediately. Use the National Minimum Wage and National Living Wage calculator to check a worker has been paid correctly.
HM Revenue and Customs (HMRC) officers have the right to carry out checks at any time and ask to see payment records. They can also investigate employers if a worker complains to them.
It’s a criminal offence for employers to not pay someone the National Minimum Wage or National Living Wage, or to fake payment records.
If HMRC finds that an employer has not been paying the correct rates, any arrears have to be paid back immediately. There will also be a fine and offenders might be named by the government.
Please do not hesitate to talk to our Business Services Team on 01903 234094 for further information.