09 Mar Changes to National Living and Minimum Wage – 1 April 2023

Posted at 11:35h in Something New, Payroll by Kevin Batty
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The National Living Wage (for those aged 23 and over) and the National Minimum Wage (for those of at least school leaving age) will increase from the 1st April 2023. The rates change on 1st April every year, the current rates and those for the new year are:

23 and over21 to 2218 to 20Under 18Apprentice
April 2022£9.50£9.18£6.83£4.81£4.81
April 2023£10.42£10.18£7.49£5.28£5.28

Please see more from HMRC here.

‍National Minimum Wage – how to make sure you’re paying the new rates correctly?

You can also perform an annual calculation by taking the total number of hours worked per week by the employee, and multiplying by the number of weeks in a year. Then, divide this number from the annual salary before any deductions.

For example, if an employee has a gross salary of £30,000 and works 40 hours per week, the hourly rate is £30,000 / 2,080 hours (40 hours x 52 weeks ) = £14.42 per hour.