What is a minimum wage, and what are the changes in the UK from April 2023?
The minimum wage is the lowest rate of pay employers can legally pay their employees. It is a legal requirement in many countries, including the UK, and has been set at different levels in different countries.
In the UK, the minimum wage rate is set to change from April 2023, so it is essential to understand what the minimum wage is and how these changes may affect workers and employers.
In this blog post, we'll discuss what the minimum wage is and how the changes from April 2023 will affect the UK workforce.
The current minimum wage in the UK
The current minimum wage in the UK is set by the National Minimum Wage (NMW) National rate which is updated every April.
The NMW rate is currently £9.50 per hour, but this will increase to £10.45 an hour from April 2023.
In addition to the NMW, many employers offer their employees a ‘living wage’. This rate is higher than the NMW and NLW and is calculated based on UK living costs.
The current UK Living Wage is set at £10.75 an hour in London and £9.50 an hour in the rest of the UK.
Another critical factor in determining what employees will be paid from April 2023 onwards is the Equal Pay Act of 1970.
This law states that workers doing equal work must be paid equally regardless of age, gender, or other protected characteristics. As such, employers must ensure their pay rates reflect fair pay for equal work.
Here at redwigwam, we believe all workers should be treated fairly, so all job roles listed on redwigwam have the National Minimum Wage as their base rate, meaning all workers are paid fairly for their work.
The changes to the minimum wage in the UK from April 2023
From April 2023, the National Living Wage will increase to £10.42 per hour (the rate for 18 to 20-year-olds is et lower and this will rise to £7.49 an hour). The rate for 16-17-year-olds will be £5.28 an hour, while the apprentice rate will remain at £5.28 an hour.
The changes to the minimum wage ensure all workers in the UK receive equal pay for work of equal value. This means regardless of age or experience, all employees should receive the same pay for performing the same job.
The increases in the minimum wage rates from April 2023 should benefit both employers and employees.
For employers, increased wages may lead to increased productivity, improved staff morale, and greater loyalty from employees. For employees, higher wages should help them to meet their living costs and provide more security for their finances.
If you are a worker in the UK, it is important to know what you'll be paid from April 2023 onwards. To find out your own rate, check the National Minimum Wage page on the government website.
You can also use the calculator provided on the page to calculate how much you should be earning depending on your age and job type.
The impact of the changes to the minimum wage on businesses and employees
The changes to the minimum wage from April 2023 will impact both businesses and employees.
For businesses, the increase in the minimum wage could result in an increased cost of hiring staff and offering salary increases.
On the other hand, employees will be looking forward to a significant increase in their income; it is estimated that employees could see an increase of as much as 19.7%. This will undoubtedly be welcome news for those in low-paid jobs, who can now benefit from a living wage that is much closer to a fair wage.
So what will you be paid from April?
In April 2023, those aged 25 and over will receive a minimum wage of £10.42 per hour. This is an increase of 6.2% compared to the current rate of £9.50 per hour. Those aged between 21 and 24 will be eligible for £10.18 per hour, and those aged 18-20 will receive £7.49 per hour. For those under 18, the minimum wage rate remains unchanged at £5.28 per hour. Apprentices under 19 or in the first year of their apprenticeship are also entitled to £5.28 per hour.
It is important to note that there are higher minimum wage rates for some industries and jobs than those listed above.
In particular, the hospitality and retail industries often have higher wages, so it's essential to check with your employer if you are unsure what rate you are entitled to receive.
Overall, the changes to the minimum wage from April 2023 are expected to impact employees and businesses positively. For businesses, it will bring an additional cost burden which must be managed; but for employees, it will mean an increase in wages that should improve their financial circumstances significantly.
