Am I being paid enough? The new minimum wage rates for 2023
New Wage Rates
The Government has recently announced the new minimum wage rates to come into force from April 2023 as set out below:
| Rate from April 2023 | Annual Increase | |
| National Living Wage (23 and over) | £10.42 | £0.92 |
| 21-22 years old | £10.18 | £1.00 |
| 18-20 years old | £7.49 | £0.66 |
| 16-17 years old | £5.28 | £0.47 |
| Apprentice Rate* | £5.28 | £0.47 |
These rates of pay will apply from 1 April 2023.
The above pay increases demonstrate that the government accepted the Low Pay Commission’s recommendations in full.
Current Wage Rates
Comparatively the current National Minimum Wage and National Living Wage rates are as follows:
| Current rate (from April 2022) | |
| National Living Wage (23 and over) | £9.50 |
| 21 to 22 years old | £9.18 |
| 18 to 20 years old | £6.83 |
| Under 18 years old | £4.81 |
| Apprentice Rate* | £4.81 |
*Apprentices
It is important to be aware that if you are an apprentice and are 19 years old or over, you will receive the apprentice rate for the first year of your apprenticeship. Once you have completed the first year of your apprenticeship, you will be entitled to receive the National Minimum Wage.
Low Pay Commission (LPC)
The LPC is an independent public body, made up of 9 Commissioners representing workers, independent experts and employees. The LPC advises the government on the rates of National Minimum Wage including the National Living Wage annually. You can access a full summary of the LPC’s findings which informed the April 2023 rates here.
National Minimum Wage
If you are of school leaving age (16 years old) and are considered a ‘worker’ then you are entitled to the National Minimum Wage.
For example, if you are an apprentice, trainee, casual labourer or work part-time then you are most likely classed as a ‘worker’. Further guidance on who is entitled to the minimum wage is available on gov.uk.
National Living Wage
If you are 23 years old or over, then you are entitled to the National Living Wage.
Accommodation
If your employer also provides you with accommodation then they could offset this against your National Minimum Wage pay. The government limits how much your employer is allowed to offset your pay by.
From 1 April 2023, the accommodation offset will be £9.10, constituting a 40pence annual increase.
Real Living Wage
By comparison to the National Minimum and Living Wage rates which are set by the Government, the Resolution Foundation independently calculate wage rates based on the cost of living. These are not statutory rates, meaning your employer is not obligated to pay these rates. Instead, these rates are encouraged and are voluntary, meaning that employers can choose to adopt these pay rates (so long as they are equal to or higher than the statutory minimums).
The cost of living in London is typically higher than anywhere else in the UK. As a result, the London Living Wage rates are greater in value. This covers all boroughs in Greater London.
These Real Living Wage rates from 22 September 2022 are set out below:
| UK | London only | |
| 18 and older | £10.90 | £11.95 |
For more information on the Real Living Wage and how to become a Living Wage Employer, visit the Living Wage Foundation.
If you have concerns that you are not being paid correctly or would like guidance on what you should be paying your employees, contact our Employment Law Advice team on 01202 525333 or by email at employment@ellisjones.co.uk and we would be happy to help.
How can we help?
When you submit this form an email will be sent to the relevant department who will contact you within 48 hours. If you require urgent advice please call 01202 525333.
