My client has approached me about the increases to national minimum and living wage (NMW/NLW) from April. They are worried about breaching the rules, as paying a fine will be more costly than ever. I would like to reassure them and explain common breaches of NMW/NLW, so they know what to avoid.
From 1 April 2023, the following increases to NMW/NLW will come into force:
| National living wage | Rate from April 2023 | Rate from April 2022 | Increase % |
| 23 years old plus | £10.42 | £9.50 | 9.7 |
| 21-22 year old rate | £10.18 | £9.18 | 10.9 |
| 18-20 year old rate | £7.49 | £6.83 | 9.7 |
| 16-17 year old rate | £5.28 | £4.81 | 9.7 |
| Apprentice rate | £5.28 | £4.81 | 9.7 |
The increases apply in the next ‘pay reference period’ after the increase. For example, if X gets paid on the 15th of the month, the old rate applies until the 15th, and the new one from the 16th. To avoid misunderstandings, your client might want to explain this to their staff.
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