In November 2022 the government announced a minimum wage increase. The changes will see the national living wage (NLW) for workers over the age of 23 increase from £9.50 to £10.42 (9.7%), with workers aged between 21 and 22 set to get an even bigger boost of 10.9% (£9.18 an hour to £10.18).
After coming into force on April 1 2023, businesses are being urged to check that they are compliant, with legal experts warning that those who pay under the legal limit could find themselves in hot water.
Katie Ash, head of employment law at Banner Jones, explains: “The National Minimum Wage is the minimum pay per hour almost all workers are entitled to. It is the same across all parts of the UK and must be paid by every single business, in every single sector regardless of size. However, the amount that each employee receives can vary depending on age and if they are an apprentice.”
As of 1 April 2023, the increases will be:
National Living Wage for over 23s: £9.50 to £10.42 an hour
National Minimum Wage for those aged 21-22: £9.18 to £10.18
National Minimum Wage for 18 to 20-year-olds: £6.83 to £7.49
National Minimum Wage for under 18s: £4.81 to £5.28
The Apprentice rate: £4.81 to £5.28
Katie added: “Those variations mean that while most businesses take steps to ensure that workers are paid correctly, it’s not uncommon for companies to make mistakes that could land them in hot water.
“Organisations that operate on shifts or employ seasonal workers are particularly vulnerable to miscalculations, and errors are often made when a worker moves up an age band or completes an apprenticeship.
“Any employer found not to be paying the minimum wage can be fined by the UK tax authority, HMRC, and workers are encouraged to log a complaint with HMRC if they feel they are being underpaid.”
To make sure that your business is compliant, Katie advises a full review of all salaries should take place and that the remuneration a person receives should be calculated on an hourly basis and cross referenced with their job title and their date of birth.
If you would like advice on the changes to the minimum wage and how and how to make sure your business is compliant, get in touch with the Banner Jones employment law team on 0114 358 3294.
