The Government announced the rates of the National Living Wage (NLW) and National Minimum Wage (NMW), in their Autumn Budget, which are coming into force from April 2023. As always, we are here to help make these changes as stress-free as possible for you and your business.
So let’s take a look at what these changes mean:
|Rate from April 2023|
|National Living Wage||£10.42|
|21-22 Year Old Rate||£10.18|
|18-20 Year Old Rate||£7.49|
|16 – 17 Year Old Rate||£5.28|
These new rates will apply from April 1st 2023.
Employers should start planning now for the pay raises which will be required from April 2023 onwards, particularly if they use payroll software which may need updating in order for the new rates to be applied correctly.
How can we help?
As always, we are here to help make these changes as stress-free as possible for you and your business. Here are some ways in which we can assist:
– Reviewing your current pay structure and identifying any areas which may be affected by the changes
– Providing template letters to communicate the changes to your employees
– Answering any questions you may have about the process or the changes themselves.
Making sure you are prepared for the upcoming changes is crucial to avoid any stressful surprises down the road. It is an offence to pay an employee less than the minimum wage. Full details of the potential penalties can be found here National Minimum Wage: policy on enforcement, prosecutions and naming employers who break National Minimum Wage law – GOV.UK (www.gov.uk)
At Spire HR, we are experts in all things payroll and would be more than happy to help take some of the burden off you.
Contact us today for advice.