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Legal update – National Living Wage update

The Legal & HR Team would like to remind members of the increase to national minimum wage rates coming into effect on 1 April 2023. The government have accepted the Low Pay Commission’s proposed increased to the national living wage (NLW) and the national minimum wage (NMW). In particular, the 9.7% increase to the NLW will impact over 2 million workers in the UK.

Age New Rate Old Rate
23 and over (NLW) £10.42 £9.50
21 – 22 £10.18 £9.18
18 – 20 £7.49 £6.83
16 – 17 £5.28 £4.81
Apprentice £5.28 £4.81
Accommodation offset amount £9.10 £8.70

 

This is the largest increase the government has ever made to NMW/NLW rates. It is recommended organisations spend some time ensuring their rates of pay do not fall short of the new minimum rates. Common issues which result in underpayment include:

  1. Deductions from pay
  2. unpaid working time
  3. incorrect use of the apprenticeship rates

For more information, please see the government website. As always, the Legal & HR Team at Scot Eng are happy to answer any queries you may have regarding the new rates of pay.

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