NMW and NI Increases


Don’t forget that the National Minimum Wage (NMW) and National Living Wage (NLW) for over 23-year-olds is increasing in April by 6.6% from £8.91 per hour to £9.50. The NMW is the lowest rate of pay allowable by law in the UK and the 2022 increase is following a recommendation by the Low Pay Commission.

See below for further details:

 

Rate from April 2022

Current rate

Increase

National Living Wage

£9.50

£8.91

6.60%

21-22 Year Old Rate

£9.18

£8.36

9.80%

18-20 Year Old Rate

£6.83

£6.56

4.10%

16-17 Year Old Rate

£4.81

£4.62

4.10%

Apprentice Rate

£4.81

£4.30

11.90%

Accommodation Offset

£8.70

£8.36

4.10%

 

The employer increases next month aren’t just limited to the minimum and living wage increases however, with the employer National Insurance Contributions (NICs) also increasing.

NICS are rising in April for employers and employees to fund a health and social care levy. From April 2023, Pensioners (who currently aren’t required to pay NICS) will also be required to pay the increase if they are still working at this time.

Employees NICS will increase from 12% to 13.25%, while employers’ contributions will increase from 13.8% to 15.05%.

Don’t forget to check you will be meeting the NLW levels by April!!

These increases apply to ALL UK workers, whether on a temporary or permanent contract. This means that companies that have temporary workers will also see their charge rates increase from the 1st April to cover the increased costs.

 

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