National Living Wages and Minimum Wages to Rise

The increases being implemented to the National Living Wage and minimum wages this April have now been announced.

The National Living Wage, which is the statutory minimum wage for workers over the age of 23 is being raised from £9.50 to £10.42, a 9.7% increase. Minimum wages for younger age groups also rise by 9.7%, apart from the 21 – 22 year old rate, which is being increased from £9.18 to £10.18, rising 10.9%.

The new wage rates will come into effect as of 1st April 2023. Alongside rises in working wages, rates are also being raised for statutory maternity, paternity, adoption, shared parental and parental bereavement will increase to £172.48 per week. Similarly, the rate for statutory sick pay (SSP) will rise to £109.40 per week.

The Low Pay Commission (LPC) recommends that the National Living Wage stays on track to reach the Government’s target of two-thirds of median earnings by the end of 2024. The Government accepted this recommendation and is set to publish its full 2022 report which sets out the evidence of such later this year.

Speaking about the announced increases, Bryan Sanderson, Low Pay Commission Chair, said:

“The rates announced today include the largest increase to the NLW since its introduction in 2016 and will provide a much-needed pay increase to millions of low-paid workers across the UK, all of whom will be feeling the effects of a sharply rising cost of living. For a full-time worker, today’s increase means nearly £150 more per month.”

To read the full announcement on the Goverment website click here. To keep up to date with relevant industry news click here.