Are you prepared for the rise in National Minimum Wage?
In April, approximately two million UK workers will receive a near inflation-matching salary increase when new the National Minimum Wage (NMW) takes effect.
This wage increase means employees can expect their take home pay to keep pace with the cost of living.
Almost all workers are entitled to be paid at least the NMW, or the National Living Wage (NLW) if they are 23 or over.
Under the changes, the NLW will increase by 9.7 per cent to £10.42 per hour – representing an increase of nearly £1 per hour. For those aged 21 and 22, the rate is higher at 10.9 per cent.
The Low Pay Commission estimates that there were two million workers paid at or below the minimum wage in April 2020, around seven per cent of all UK workers.
The rates change on 1 April every year and for 2023/2024 they are:
| April 2023 | Current rate percentage | ||
| National Living Wage | £10.42 | £9.50 | (9.7 per cent) |
| 21-22 rate | £10.18 | £9.18 | (10.9 per cent) |
| 18-20 rate | £7.49 | £6.83 | (9.7 per cent) |
| 16-17 rate | £5.28 | £4.81 | (9.7 per cent) |
| Apprentice rate | £5.28 | £4.81 | (9.7 per cent) |
Apprentices are entitled to the apprentice rate if they’re either:
- Aged under 19
- Aged 19 or over and in the first year of their apprenticeship.
Am I entitled to the NMW?
The Government say almost all workers are entitled to the National Minimum Wage, including:
- Casual workers
- Part-time workers
- Temporary workers
- Agency workers
- Workers and homeworkers paid by the number of items they make
- Disabled workers
- Agricultural workers
- Foreign workers
- Trainees.
However, if you’re self-employed or a company director, you’re not entitled to the National Minimum Wage.
The Government says these increases represent another step on the path to the Government’s target of an NLW set at two-thirds of median earnings by 2024.
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