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Increases to National Minimum Wage from 1 April 2023


Every year in April, new and updated employment law provisions come into force. The new National Minimum Wage increases have now been announced.

Why is this important?

Employers will be expected to comply with the new National Minimum Wage rates from 1 April 2023.

The new rates will be:

  • Age 23 or over: £10.42
  • Age 21 to 22 – £10.18
  • Age 18 to 20 – £7.49
  • Age 16 to 17 – £5.28
  • Apprentice – £5.28

This reflects an increase of 9.7% to 10.9% across the categories. The increases are intended to support the living standards of lower paid workers in light of the cost-of-living crisis and to fall in line with the Government’s intention to reach two-thirds of median earnings of the relevant population by 2024.

The National Living Wage has therefore also increased to £10.42 (being the highest rate National Minimum Wage). This differs from the ‘Real Living Wage’ which is a wage set by the Real Living Wage Foundation. It’s entirely voluntary, but many employers choose to pay it anyway. The National Living Wage is based on median earnings, whereas the Real Living Wage rates are higher because they are independently calculated based on what people need to get by. For 2022/2023, the Real Living Wage is £10.90 (and £11.95 for London wages). Find out more here.

What should you do?

Ensure you are prepared for the wage increase before 1 April 2023. For existing employees and new starters, you will need to ensure that you are paying the correct rate from that point onwards and you may need to update their contracts if they don’t already comply.

If you would like to speak to our team, please call us on 0800 2800 421 or contact us here.

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