The new National Minimum Wage (NMW) and National Living Wage (NLW) rates come into effect on 1 April 2023.

The Chancellor told Parliament: "I am accepting the recommendation of the Low Pay Commission to increase it next year by 9.7 per cent.

That means, from April 2023, the hourly rate will be £10.42, which represents an annual pay rise worth over £1,600 pounds to a full-time worker."

Below is the full breakdown of the changes alongside their percentage increases:

• National Living Wage (aged 23 or over): from £9.50 to £10.42, an increase of 9.7%
• Minimum wage aged 21 to 22: from £9.18 to £10.18, an increase of 10.8%
• Minimum wage aged 18 to 20: from £6.83 to £7.49, an increase of 9.6%
• Minimum wage for under-18s: From £4.81 to £5.28 an increase of 9.7%
• Apprentice rate: £4.81 to £5.28 an increase of 9.8%

Employers must update their systems by 1 April 2023 to reflect the new rates. There are significant penalties for employers who are found to have paid workers less than they are entitled to by law.

If you have underpaid an employee, you must pay any arrears immediately. There are penalties for non-payment of up to 200% of the amount owed unless the arrears are paid within 14 days. The maximum fine for non-payment can be up to £20,000 per employee, and employers who fail to pay face up to a 15-year ban from being a company director as well as being publicly named and shamed.

If you would like more advice and assistance with the national minimum wage, don't hesitate to contact us at info@gkaccountingservices.com or

call us on 01269 518 815, where we will be more than happy to answer any of your questions.