The Chartered Institute of Payroll Professionals
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National living wage / national minimum wage National living and minimum wage 2023 campaign Published: 12 April 2023 Emailed: 12 April 2023
The Department for Business and Trade, working with other government departments and external stakeholders, is running a promotional campaign to increase awareness of the rate changes, encouraging workers to check their pay. The campaign wants eligible workers to know their entitlements and what to do if they are not being paid the correct amount. Additionally ensuring that employers meet their legal responsibilities and know where to go for help or advice about paying workers correctly. The national living wage (NLW) and national minimum wage (NMW) increased on the pay reference period for 1 April and therefore workers may see an increase in their pay automatically from this month. It has been reported that the national living and minimum wage provides a direct boost to nearly 3 million workers in the UK this year, rewarding and providing security for working people. It is a key part of the Government’s commitment to protect the UK’s lowest paid workers and to support households with the cost of living. The NLW rate, which is for workers aged 23 years and over, increased by 9.7% to £10.42 an hour and is the largest ever cash increase to date. The rate has risen every year since it was introduced in 2016. This 92p increase means a full-time worker on the NLW will see their annual earnings rise by over £1,600.
The NMW, which has also increased, applies to those from school leaving age to 22. The hourly rate depends on age and whether the worker is an apprentice. All the new rate increases from 1 April 2023 can be viewed here.
The Government urges workers to check their payslip to ensure they are not being underpaid and provides the below steps if they think they’re not being paid the correct amount:
have a conversation with the employer
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• visit gov.uk/ checkyourpay for information about the new rates that apply and the steps that can be taken • visit the Acas website for free impartial advice or call Acas for free • make an anonymous complaint to HMRC if the issue is not resolved
Even if employers are paying workers at or above the NLW and NMW, an underpayment can still occur. This can easily happen when an employer makes wage deductions or doesn’t pay for all time worked.
The Government also provides steps for employers to meet their legal responsibilities and avoid falling foul of the law:
check the new rates at gov.uk/checkyourpay
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• identify which staff are eligible for the new rate • update the company payroll and communicate the changes to staff as soon as possible • call the Acas helpline for advice and support to understand what you need to do to pay workers correctly • visit the calculating the minimum wage guidance page to view practical advice. The CIPP is proud to have held roundtable events with the Low Pay Commission (LPC) to allow our members to give qualitative feedback directly to commissioners. If you are interested, please keep an eye out for future roundtable invites which will be sent to full, fellow and chartered members. Thank you to all members who took part last year or fill out our survey, your contributions are greatly appreciated.
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