National Minimum Wage Increase 2023

New minimum wage rates taking effect from 1st April 2023.

In the autumn statement on 17th November 2022, the Government announced increases to the National Living Wage (NLW) and National Minimum Wage (NMW), set to take effect from 1st April 2023.

The changes saw the Government implement the recommendations of the Low Pay Commission (LPC), an independent advisory body within the Department for Business, Energy and Industrial Strategy, in full.

Chair of the LPC, Bryan Sanderson, said: “The rates announced include the largest increase to the NLW since its introduction in 2016 and will provide a much-needed pay increase to millions of low-paid workers across the UK, all of whom will be feeling the effects of a sharply rising cost of living. For a full-time worker, today’s increase means nearly £150 more per month.”

The National Minimum Wage is divided into three tiers. It is the minimum hourly rate that employers must pay to workers aged between 16 and 22. For apprentices aged under 19, and those aged 19 or over in the first year of their apprenticeship, the apprentice rate will instead apply.

The National Living Wage is the minimum hourly rate employers must pay workers aged 23 and over. In 2024, the age threshold for the NLW will be reduced from 23 to 21.

The rates which will apply from 1 April 2023 are as follows:

  Rate from 1 April 2022 Rate from 1 April 2023 Increase
National Living Wage (NLW)
for workers 23 and over
£9.50 £10.42 9.7%
21-22 year old rate (NMW) £9.18 £10.18 10.9%
18-20 year old rate (NMW) £6.83 £7.49 9.7%
16-17 year old rate (NMW) £4.81 £5.28 9.7%
Apprentice rate £4.81 £5.28 9.7%
Accommodation offset £8.70 £9.10 4.6%









In order to retain talented employees, it would be a good idea to introduce regular pay reviews to give a clear idea of when they can expect a pay rise, and what they need to do to achieve it. Good communication is key to helping employees feel supported and secure. By listening to their concerns and working together, you can find solutions that work for everyone.

We hope you find this information useful. If you need any help recruiting, or would like to speak to one of our team, please do get in touch with one of our team today on 01279 758855.

Posted on Tuesday Mar 21