New wage and statutory payment rates from April 2023

Published 27 February 2023
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Every year the Government reviews the minimum wage rates.

The new rates which are effective from the first pay period on or after 1 April 2023 are listed below.

The National Living Wage applies to those employees or workers aged 23 or over, and the National Minimum Wage for those employees or workers aged under 23 or an apprentice.

Anyone who is entitled to receive the apprentice rate must be aged under 19, or 19 and over and in the first year of their apprenticeship agreement.

If an apprentice is 19 or over and have completed their first year of their current apprenticeship,  then they are entitled to be paid at least the minimum wage for their age.

The new rates:

Age 23 or over (National Living Wage) – £10.42 an hour (increase from £9.50).

Age 21 to 22 – £10.18 an hour (increase from £9.18).

Age 18 to 20 – £7.49 an hour (increase from £6.83).

Under 18 – £5.28 an hour (increase from £4.81).

Apprentices – £5.28 an hour (increase from £4.81).

Employers must be sure that pay is increased in line with any birthdays, or work anniversaries for apprentices moving into their second year.

Increases to other statutory payments

In addition to the National Living Wage and the National Minimum Wage rising in April 2023, there will also be increases to other statutory payments. These are as follows:

Statutory Sick Pay

Weekly rate: £109.40 for employees (from £99.35) as long as they earn on average at least £123.00 a week (known as the Lower Earnings Limit) and have been ill for at least 4 days in a row.

Statutory Maternity Pay & Statutory Adoption Pay

Earnings-related rate: 90% of average weekly earnings (before tax) for the first six weeks of the SMP/SAP period for employees who have earned on average at least £123.00 a week (known as the Lower Earnings Limit), along with other eligibility criteria.

Basic weekly rate: Lesser of earnings-related rate or £172.48 (from £156.66) payable after the first six weeks of the SMP/SAP period.
Statutory Paternity Pay, Statutory Parental Bereavement Pay & Shared Parental Pay

Lesser of 90% of average weekly earnings or £172.48 (from £156.66) for the entire SPP/SPBL/ShPP period for employees who earn on average at least £123.00 a week (known as the Lower Earnings Limit) along with other eligibility criteria.

Auto-enrolment

Auto-enrolment pension contributions remain static with a total minimum contribution of 8% – employers must make a minimum contribution of 3% and the employee must make a 5% minimum contribution.

If you require any advice or help on this matter please contact us.

Mayes Accountants
Tel:  01254 300050
Email:  [email protected]