Accountants & Tax Advisors for small business, contractors and self employed individuals View Services

Minimum Wage Changes

From 1 April 2023, the National Living Wage and National Minimum Wage rates will increase. The new rates will be as follows:

  • Aged 23 and over: £10.42 per hour
  • Aged 21 to 22: £10.18 per hour
  • Aged 18 to 20: £7.49 per hour
  • Aged 16 to 17: £5.28 per hour
  • Apprentices: £5.28 per hour

Salaried employees

Employers will need to check if the above changes affect any employees who are paid a fixed salary, rather than variable hours. The salary must be no lower than the equivalent hourly rate calculated by reference to their normal contracted hours.

Non-payrolled employees

If you don’t currently operate a payroll scheme because your employees earn less than the Lower Earnings Limit (LEL), you will need to check whether this increase affects you. From April, the LEL will remain at £123 per week, above which employees’ wages must be reported on a payroll scheme.

National Minimum Wage Pitfalls

Employers should also make sure any calculations of minimum wage levels take account of other circumstances that might occur in the workplace. This previous article provides some examples here.