The National Minimum Wage in 2023
New rates of the National Living Wage (NLW) and National Minimum Wage (NMW) come into force on 1 April 2023. These follow recommendations made in the March 2023 by the Low Pay Commission (LPC). To mark the uprating, this report looks ahead at the implications of the incoming rates and the LPC’s remit for the year ahead.
The new NLW and NMW rates are set out below. The NLW applies to all workers aged 23 and over.
| Rate from April 2023 | Current rate (April 2022 to March 2023) | Increase | |
|---|---|---|---|
| National Living Wage (23+) | £10.42 | £9.50 | 9.7% |
| 21-22 year old rate | £10.18 | £9.18 | 10.9% |
| 18-20 year old rate | £7.49 | £6.83 | 9.7% |
| 16-17 year old rate | £5.28 | £4.81 | 9.7% |
| Apprentice rate | £5.28 | £4.81 | 9.7% |
| Accommodation offset | £9.10 | £8.70 | 4.6% |
The report sets out the LPC’s latest projections for the NLW rate required in 2024 to reach the target of two-thirds of median earnings. Our central estimate of the on-course rate of the NLW for 2024 is £11.16, within a range of £10.90 to £11.43.
