On 1st April each year, all minimum wage rates are increased. This includes all National Minimum Wages rates and the National Living Wage rate. By law, your employer must pay a minimum amount on average for the hours you work. This is called the:
- National Living Wage (NLW) if you’re aged 23 or over
- National Minimum Wage (NMW) if you’re aged under 23 or an apprentice
The rates are published on gov.uk but here are the current minimum wage rates and new rates that came into effect from April 2023.
| Current rate (since April 2022) | New rate from April 2023 | Increase | |
| National Living Wage (23 years old and over) | £9.50 | £10.42 | 9.7% |
| National Minimum Wage adult rate (21-22 years old) | £9.18 | £10.18 | 10.9% |
| National Minimum Wage (18-20 years old) | £6.83 | £7.49 | 9.7% |
| National Minimum Wage (16-17 years old) | £4.81 | £5.28 | 9.8% |
| National Minimum Wage (apprentice rate) | £4.81 | £5.28 | 9.8% |
The National Minimum Wage (Apprentice rate)
You’re entitled to be paid at least the apprentice rate if you’re an apprentice aged:
- under 19
- 19 or over, and in the first year of your current apprenticeship agreement
If you’re 19 or over and have completed the first year of your current apprenticeship, you’re entitled to be paid at least the minimum wage for your age.
If it’s your birthday, when do you start to receive the higher rate?
When you have a birthday that takes you into the higher minimum wage rate bracket, in other words, you turn 18, 21 or 23 or if you are an apprentice who turns 19, or finishes the first year of their current apprenticeship, the higher rate starts to apply from the next pay reference period after the increase.
For example, Rosie is paid monthly on the 15th of the month and turns 21 on 1st June. The old rate will apply until Rosie’s next pay reference period starts on 16 April.
Rosie will be paid:
- the old rate for 1 April to 15 April
- the new rate for 16 April to 15 May
Call HB for help
If you want to discuss minimum and living wage rates, or to discuss any aspect of payroll, do give us a call. Not only can we offer you a full payroll service, we can offer you support with your tax, management accounting and so much more. You can contact us on 01992 444466. We’re accountants for business and for people. We’re here to help.
Read our latest blogs below
- Thank You For Signing Your Engagement Documentation!
- Budget Breakdown: Insights for Self-Employed, Companies, and Everyday Earners
- Would you host a T Level student? We are!
- Discovering Your Career Path with HB Accountants at Generation Hertford: Exploring Ikigai and Purpose with Biz4Biz’s App
- HB Accountants named as SME Apprenticeship Employer of the Year
The information contained above is for general guidance purposes only. Whilst every effort has been made to ensure the contents are accurate, please note that each individual has different circumstances and it is essential that you seek appropriate professional advice before you act on any of the information contained herein. HB Accountants can accept no liability for any errors
