National Living Wage – What has changed for employers

Employers must abide by the new National Minimum Wage (NMW) rates that took effect from April 2023 and benefit around two million workers.

The National Living Wage (NLW) increased by 9.7 per cent or 92 pence to £10.42 per hour, providing an annual pay rise worth over £1,600 to a full-time worker. The new rates are as follows:

Apprentices are entitled to the apprentice rate if they’re either under 19 or 19 or over and in the first year of their apprenticeship.

The penalties for not paying the NMW can be onerous, including fines of up to £20,000 and legal action, including criminal proceedings.

Employers found to have failed to pay the NMW may also be required to pay the outstanding amount owed, going back up to six years, and their names may be provided to the Department for Business, Energy and Industrial Strategy (BEIS) for public listing.

If you are unsure of how these changes affect your workforce and existing employment practices, seek professional advice.

For help and advice on all aspects of employment law, please get in touch with us.

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