Several payments to employees are set to increase in early April 2023. These changes affect all employers. Does your business have employees? Here’s what you need to know:
3 Rate increases that affect all employers
1. National Minimum Wage and National Living Wage (NMW/NLW)
From 1 April 2023, the National Living Wage (for those aged 23 and over) and the National Minimum Wage (for those of at least school leaving age) will increase to:
- Employees aged 23 and over: £10.42
- Employees aged 21 – 22: £10.18
- Employees aged 18 – 20: £7.49
- Employees aged under 18: £5.28
- Apprentice rate: £5.28
All employers – regardless of size – must pay the correct minimum wage. It’s important to note that rates may change on employees’ birthdays or as apprentices progress to their second year.
If you are a payroll client of re:accounts, the new rates will be applied to the pay reference period immediately after 1 April 2022 in line with government requirements.
2. Statutory payment for families
Several family-friendly payments increase to £172.48 per week on 2 April 2023. These apply to employees away from work on paid family leave. The payments involved include:
- Shared parental
- Maternity
- Adoption
- Paternity
- Paternal bereavement
“April is always a busy time for payroll,” explains Emily Bridges of re:accounts in Stevenage. “The impact of the new rates depends upon who is employed by each business. However it’s important that employers know the bigger picture as circumstances and therefore the profile of their teams change.”
Is your business affected by these changes?
If you have queries about payroll payments, please let us know. We’re here to help.
