The National Minimum Wage 2023 UK (NMW 2023 UK) got revised on 1st April 2023. The National Minimum Wage is the minimum legal amount (£) per hour needed to be paid by businesses in the UK. The minimum wage UK pays employees on per hour basis, but it also applies to all employees getting paid daily or monthly (subject to certain conditions). The National Living Wage is higher than the National Minimum Wage; workers get it if they’re over 23. Irrespective of how small an employer is. They still have to pay the correct minimum wage.
What is the National Minimum Wage 2023 UK?
The National Minimum Wage (NMW 2023 UK) is the minimum wage rate paid hourly to workers above the age of 23 if they fall in any one of the following:
- Full-time Worker
- Part-time Worker
- Casual Worker
- Agency Worker
- Apprentice, in some instances
In 2021, the age threshold was reduced from 25 years to 23 years of age. It is informed by the Low Pay Commission Board that the age threshold will be further reduced to 21 years in the coming year.
The new minimum wage UK rates in 2023 are:
| National minimum wage (NMW) rate | Annual increase (£) | Annual increase (per cent) | |
|---|---|---|---|
| National Living Wage (23+) | £10.42 | 0.92 | 9.7 |
| 21-22 Year Old Rate | £10.18 | 1.00 | 10.9 |
| 18-20 Year Old Rate | £7.49 | 0.66 | 9.7 |
| 16-17 Year Old Rate | £5.28 | 0.47 | 9.7 |
| Apprentice Rate | £5.28 | 0.47 | 9.7 |
| Accommodation Offset | £9.10 | 0.40 | 4.6 |
The above represents the rise in the living wage and minimum wage. The increase means that a full-time worker will receive nearly £150 extra from the previous month. This increase in the wage rate was nothing more than honey to the ears of those feeling the pinch of the rising cost of living.
Minimum Wage UK increases due to significant reasons such as inflation, the rising cost of goods, and to fight against poverty. It becomes necessary to foster the economic growth of the nation.
What was the UK National Minimum Wage 2022 per annum?
The commission of the UK, in 2022, significantly increased the wage rate for the age groups from 16 to 22.
| Rate | Previous Rate | 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% |
In Short
Overall, the revision of the National Minimum Wage in the UK demonstrates the government’s effort to address income inequality, improve living standards, and support the economic well-being of workers. By setting minimum wage rates that keep pace with the changing economic landscape, the UK aims to create a fair and prosperous society for all.
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