There will be a significant increase to the National Minimum Wage in April. Read below to find out how this affects you and/or your staff.
From April 2023, the National Minimum Wage in the United Kingdom will increase. The minimum wage will increase for all workers, from apprentices to those entitled to the National Living Wage.
We understand that this news will be of interest to both our clients and candidates, as many of you will be affected by these changes. So, we wanted to make you aware and explain the changes in this blog.
The National Minimum Wage Increase
Firstly, let’s talk about the minimum wage. Currently, the national minimum wage in the UK varies depending on the worker’s age, with different rates for those aged 18-20 and 21-22. There is also a significant difference in rate for those under 18 and those working an apprenticeship.
The rates for all age brackets are quite significant and have been implemented to address the problem of low pay and cost of living in the UK. Bryan Sanderson of the Low Pay Commission Chair commented “For a full-time worker, today’s increase means nearly £150 more per month.”
We have illustrated the changes in the table below.
These changes are a positive step in the right direction. The increase to the national minimum and living wages will definitely help the workforce. We also believe that this increase in the minimum wage will have a positive impact on recruitment. By offering a better rate for work, we can attract a wider range of candidates and improve retention rates. This means that you will be able to retain the best employees and build a more productive and motivated workforce.
However, we also understand that some of our clients and other business owners may have concerns about the impact of these changes. For example, smaller businesses and those operating in low-profit sectors may struggle to absorb the additional costs of paying higher wages.
We want to reassure you that we are here to support you through these changes. Our team of recruitment experts are on hand to offer advice and guidance on how to navigate the new minimum wage rates and ensure that your business or career remains successful.