National Minimum Wage and other rates increases announced for 2023/24

Employers should take note that, in November 2022, the Department for Work and Pensions published a range of rate increases for 2023/2024. These are set to take effect from 1 April 2023.

Employee Benefits

Employers should be mindful that the statutory rate for a number of employee benefits is set to rise. For example, the statutory sick pay rate will increase to £109.40 per week, up from £99.35. Adoption, maternity, paternity, shared parental and parental bereavement pay will increase to £172.48 per week, up from £156.66.

National Minimum Wage and National Living Wage

National Minimum Wage and National Living Wage rates for 2023/2024 have also been released. These are:

• National Living Wage (23 and over): £10.42 (increase from £9.50)
• 21-22: £10.18 (increase from £9.18)
• 18-20: £7.49 (increase from £6.83)
• Under 18: £5.28 (increase from £4.81)
• Apprentice (under 19, or over 19 and in the first year of apprenticeship): £5.28 (increase from £4.81)

Accommodation Offset 

The ‘accommodation offset’ (which applies for National Minimum Wage purposes if an employer provides accommodation to an employee for free) has been updated to £9.10 per day, up from £8.70 per day.

Real Living Wage 

The Real Living Wage is a rate of pay, independently calculated by reference to living costs in the UK. Employers who pay the Real Living Wage do so voluntarily; it is not connected to the UK Government’s assessment.

As a reminder for Real Living Wage employers, the Real Living Wage Foundation announced on 22 September 2022 that the Real Living Wage had increased to £10.90 across the UK and £11.95 in London. This was a rise of £1.00 and 90p respectively, the largest single increase in the organisation’s 11-year history. Real Living Wage employers should implement this rise as soon as possible, but must have implemented it by 14 May 2023 to still be considered a Real Living Wage employer.