March 30, 2023

Minimum wage rise – Employers must abide by new rates

News Article

The rise in the National Minimum Wage (NMW) in April is set to benefit about two million workers.

The new rates will take effect from April 2023, with the National Living Wage (NLW) increasing by 9.7 per cent or 92 pence to £10.42 per hour. This represents an annual pay rise worth over £1,600 to a full-time worker.

The new rates are:

23 and over 21 to 22 18 to 20 Under 18 Apprentice
April 2022 (current rate) £9.50 £9.18 £6.83 £4.81 £4.81
April 2023 £10.42 £10.18 £7.49 £5.28 £5.28


Apprentices are entitled to the apprentice rate if they’re either under 19 or 19 or over and in the first year of their apprenticeship.

Samantha Randall, an Associate Solicitor with Palmers, who specialises in employment law, said: “The penalties for not paying workers the national minimum wage can be onerous.

If an employer is found by HM Revenue & Customs (HMRC) to have failed to pay the minimum wage, the actions that can be taken against them include:

  • Requiring payment of the outstanding amount owed, going back up to six years, through the issuance of a notice
  • Imposing a fine of no less than £100 per employee or worker affected, and up to £20,000, regardless of the amount of underpayment
  • Pursuing legal action, including criminal proceedings
  • Providing the names of businesses and employers to the Department for Business, Energy and Industrial Strategy (BEIS), which may choose to list them publicly

“Additionally, If an employee has not been paid the minimum wage, they can make a claim to an employment tribunal.

“If you are unsure of how these changes affect your workforce and existing employment practices, it is important to seek professional advice.”

For help and advice on all aspects of employment law including adhering to the National Minimum Wage rules, please get in touch with us.