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What is the UK Minimum Wage for 2023?

What is the UK Minimum Wage for 2023?

The UK minimum wage changed in 2022. And, in 2023, it will change again! Otherwise known as the UK National Minimum Wage, this is the minimum pay, per hour, that an employer can pay an employee. In this article, we’re profiling the latest changes and how they relate to other relevant wage rates.

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What is Minimum Wage?

The term minimum wage refers to the minimum amount of remuneration that an employer can offer a potential employee. The National Minimum Wage in the UK is set by the government and varies based on age and apprentice status.

What was the Minimum Wage in the UK in 2022?

For the vast majority of workers in the UK, the minimum wage in 2022 saw increases across the board across each relevant age range.

That included wages for 16-17-year-olds (£4.81 with a 4.1% increase), 18-20-year-olds (£6.83 with a 4.1% increase) and 21-22-year-olds (£9.18 with a 9.8% increase).

Rate

Previous Rate

April 2022 Rate

Increase

National Living Wage

£9.50

£9.50

6.6%

21-22 Year Old Rate

£8.36

£9.18

9.8%

18-20 Year Old Rate

£6.56

£6.83

4.1%

16-17 Year Old Rate

£4.62

£4.81

4.1%

What is the Minimum Wage in the UK in 2023?

As of 1 April, 2023, the UK minimum wage for 2023 will see further increases, across the board, which will end up looking like this:

Rate

Previous Rate

April 2023 Rate

Increase

National Living Wage

£9.50

£10.42

9.7%

21-22 Year Old Rate

£9.18

£10.18

10.8%

18-20 Year Old Rate

£6.83

£7.49

9.6%

16-17 Year Old Rate

£4.81

£5.28

9.7%

What Was the New Minimum Wage for 2023?

The minimum wage for UK workers in 2023 increased by approximately 9.7%, 10.8%, 9.6% and 9.7% depending on age.

What is the 2023 National Living Wage the UK?

Tabled in 2015, and officially introduced in 2016, the National Living Wage is a wage scheme designed to be higher than the minimum wage. It applies to all those aged 23 and up who are not in the first year of an apprenticeship. From 1 April 2023, the National Living Wage stands at £10.42 per hour.

What is the National Minimum Wage?

Otherwise understood as the step before the National Living Wage, the National Minimum Wage applies to anyone between the ages of 16-22 (or who is in their first year of an apprenticeship). The National Minimum Wage is dependent on age.

Is the National Minimum Going Up in 2023?

Potentially, but it is too soon to tell. Projections suggest that it may rise by 6.1% for the National Living Wage in 2024.

How is the UK Minimum Wage in 2023 Calculated?

The National Minimum Wage is a negotiated settlement based on recommendations from businesses and trade unions.

Who is Entitled to the National Minimum Wage?

Both the National Living Wage and National Minimum Wage apply to all workers in the UK. It mainly varies based on age (and apprenticeship status). But, even part-time labourers, casual workers and anyone else providing work in the UK are entitled to the minimum wage.

Who Does Not Qualify for the National Minimum Wage?

The National Minimum Wage in the UK does not apply to those who are self-employed, working on a volunteer basis and family members who share a common residence as their employer and complete household chores.

What is the Apprentice Rate?

The apprentice rate only applies to people under the age of 19, or who are over the age of 19 but are subsequently in the first year of an apprenticeship. The apprentice rate for 2022 was £4.81, and the rate for 2023 will be £5.28. If apprentices are both over the age of 19 and no longer in their first year, they are entitled to their relevant minimum wage.

Why Did the UK Minimum Wage in 2023 Change?

Changes to the National Minimum Wage were made following recommendations by the Low Pay Commission (LPC). Their intent is to support both the wages and living standards of low-paid workers across the UK, and are designed to be in line with the general trends of the wider economy.

What is the Real Living Wage?

Introduced as a voluntary wage scheme in the UK, the Real Living Wage is paid by over 10,000 employers in the UK (including Nationwide, Google, Everton FC and Chelsea FC). It is currently £9.90 in the UK and £11.05 in London.

Was There A Change in the Real Living Wage?

As of 22 September 2022, the Real Living Wage has seen a 10.1% increase (year-over-year) and now sits at £10.90 in the UK and £11.95 in London. This will extend to 390,000+ workers who are currently paid across 11,000 employers.

UK Wage Rates Compared

National Minimum Wage

National Living Wage

Real Living Wage

Statutory

Statutory

Voluntary

£10.18

£10.42

£10.92

21 and older

23 and older

19 and older

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