What are the Minimum Wage Rates?

It’s important for businesses to stay up-to-date on current employment regulations and laws. And, that’s especially true when it comes to minimum wage rates. The National Minimum Wage (NMW) and the National Living Wage (NLW) are two important terms for employers to understand. So, if you’re not familiar with them – this post is for you!  

What is the National Minimum Wage (NMW)?

The National Minimum Wage is the minimum amount per hour that most workers are entitled to receive for their work. This includes employees, apprentices, and those working through agency arrangements. The current National Minimum Wage rates vary based on the worker’s age, with workers aged 23 and over receiving the National Living Wage.

What is the National Living Wage (NLW)?

The NLW is a higher minimum wage rate that was introduced in April 2016, which only applies to those aged 23 and over. It’s important to note that these rates are reviewed annually by the government and are subject to change. The National Living Wage rates change on 1 April every year along with the National Minimum Wage rates.

What are the minimum wage rates from 1 April 2023?

The NLW has increased to £10.42 per hour from £10.18. As the NMW rates vary based on age, workers aged 21-22 will receive £10.18 per hour, with workers aged 18-20 receiving £7.49 per hour. . Employers must pay at least the National Minimum Wage or National Living Wage to their employees, and failure to do so can result in financial penalties and damage to their reputation.

How can we help?

As accountants, we understand the importance of clients being aware of their obligations and paying their employees the minimum wage. Also, we can advise on ways to manage payroll costs and ensure compliance with employment regulations. So, if you are struggling to stay informed and up-to-date on current minimum wage rates, do give us a call! We’re always happy to help employers ensure that they’re meeting their legal obligations and providing fair pay to their employees.

If you would like to find out more about how we can help, please call us on 01243 782423. Alternatively, email us from our contact page and we will get in touch! We also update our YouTube Channel regularly with new content, see here: Lewis Brownlee YouTube channel