Managing and running payroll isn’t easy. As an employer, you’ll have to keep up with the latest legislative changes to ensure your workers get paid on time, in full, and fairly. As of this month, there’s a very big change that will impact the way you manage payroll. Read on to discover the new rates for the National Minimum Wage in the UK.
How much is minimum wage in the UK now?
The rates for UK minimum wage will increase by 9.7%. This increase is applicable across all minimum wage bands, apart from the rate for workers aged 21 and 22, who will enjoy an increase of 10.9%.
The percentage rise will mean workers aged between 21 and 22 receive £1.00 more per hour. Workers aged 18 to 20 who previously earned £6.83 per hour will now get £7.49. While minimum wage workers under 18 years of age and apprentices will see their hourly rate increase from £4.81 to £5.28.
Why has the minimum wage been increased?
The rate rise was announced to reduce the burden of the cost of living crisis for households across the UK, with increasing costs for everyday essentials like broadband, energy, water and council tax causing concern for families up and down the country.
When was the change implemented?
While the minimum wage hike was announced in Chancellor of the Exchequer Jeremy Hunt’s autumn statement, the increase isn’t due to take effect until this month (April 2023).
What about the National Living Wage?
Contrary to popular belief, the minimum wage and National Living Wage are not interchangeable. The minimum wage is the minimum pay per hour any worker in the UK is entitled to, with the bands and varying levels of pay differing based on the worker’s age and if they’re an apprentice. The National Living Wage is applicable over the age of 23 and tends to be higher than the National Minimum Wage.
Despite their differences, the National Living Wage also received a boost, rising by 9.7% to £10.42 per hour this month.
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