The laws are always changing when it comes to wages, but it is essential that you remain compliant and pay your staff fairly!
There are two very important laws that are in place regarding pay and that is the National Minimum Wage and the National Living Wage. Both are legal requirements for all employers to comply with to make sure that they are paying their staff enough money to survive.
The National Minimum Wage is the minimum pay per hour that most workers and apprentices aged 16 and over – 24 are entitled to by law. As of April 2023 the National Minimum Wage starts at £5.28 for under 18s and many apprentices, and rises to £10.42 for workers aged 23 and over.
The National Living Wage applies only to workers aged 23 or older. As of April 2023 the National Living Wage is £10.42 an hour.
What is the National Minimum Wage?
Minimum wage increases from April 2023
- National Living Wage (23+): From £9.50 to £10.42 an hour
- National Minimum Wage (21-22): From £9.18 to £10.18 an hour
- National Minimum Wage (18-20): From £6.83 to £7.49 an hour
- National Minimum Wage (under 18s): From £4.81 to £5.28 an hour
- The Apprentice Rate: From £4.81 to £5.28 an hour
Who does the apprentice minimum wage apply to?
The apprentice minimum wage applies only to apprentices that are 19 or younger, or aged 19 or older and in the first year of their apprenticeship.
An apprentice who is both 19 or over, and has completed the first year of their apprenticeship, is entitled to the full minimum wage for their age.
For example, a 21 year old apprentice who is in the second year of their apprentice must be paid a minimum wage of £10.18 an hour.
How we can help
If you need some support in complying with the National Living Wage or National Minimum Wage, then we are here to help you.
Our HR consultants have years of experience when dealing with salary and complying with changing laws and we can support you in this area too.
With our support we can assist in:
- Updating contracts of employment to meet your legal obligations when it comes to National Minimum and Living Wage
- Keeping you regularly updated on any changes in employment law including increases in National Minimum and Living Wage
Just call us on 0845 2626 260 for more information