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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 from the 1st April 2023. The rates change on 1st April every year, the current rates and those for the new year are:
Please see more from HMRC here.
National Minimum Wage – how to make sure you're paying the new rates correctly?
If you operate a salary for an employee who is not a director of the Limited Company, it is importantto review their working hours and rate paid, to ensure they do not fall below the National Minimum Wage and the National Living Wage rates. Please get in touch with your dedicated accountant to discuss this in more detail if you are not sure.
You can also perform an anual calculation by taking the total number of hours worked per week by the employee, and multiplying by the number of weeks in a year. Then, divide this number from the annual salary before any deductions.
For example, if an employee has a gross salary of £32,760 and works 36.2 hours per week, the hourly rate is £32,760 / 1,882.4 hours (36.2hours x 52 weeks ) = £17.40 per hour.
Nice to know: According to the Office for National Statistics, the average actual weekly hours of work for full-time workers (seasonally adjusted) to 31st December2022 was 36.2 hours per week, and the average full-time salary in the UK in December 2022 was £32,760, an increase of £988 on last years total of£31,772 calculated to April 2021.
Please get in touch with your dedicated accountant to discussthis in more detail or email email@example.com, if you would liketo make an changes to your employees rates of pay, in April 2023.
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