On 1 April 2022 the national living wage (NLW) for those aged over 23 increased by 6.6% to £9.50. Workers aged between 21-22, to whom the National Minimum Wage (NMW) applies, will see their pay increase by 9.8 per cent to £9.18 per hour. These increases follow recommendations made to the government by the Low Pay Commission.
All employers will need to check their employees’ pay and make sure their wages comply with the National Minimum Wage 2022 regulations.
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What is the difference between the NMW and NLW?
The National Living Wage (NLW) is the same as the NMW and does not relate to the cost of living. The NMW applies to workers aged 16-22 years. The NLW applies to people aged 23 years and older.
The NMW for apprentices applies to workers aged under 19 years who have a contract of apprenticeship, and apprentices aged 19 or over in the first year of their apprenticeship and covers time spent working and training.
Below is the full list of NLW and NMW rate increases:
Source: National Living Wage Increase boosts pay of low-paid workers - GOV.UK (www.gov.uk)
Commenting on the increases, Bryan Sanderson, Chair of the Low Pay Commission, said:
“Minimum wage workers across the United Kingdom continue to play a vital role in ensuring a strong post-pandemic economic recovery. In previous years the LPC has sought to keep increases to the minimum wage above inflation. However, inflation is now expected to be higher than the forecasts we had when we made our recommendations last October.”
The April 2022 increases align with the government’s target of ensuring the National Living Wage reaches two-thirds of median earnings by 2024.
The government has also published a new remit for the Low Pay Commission, asking it to submit its recommendations for the NMW and NLW by October 2022.
Get legal assistance from LawBite
If you do not comply with the National Minimum Wage rates and National Living Wage laws, HMRC can take legal action against your business. LawBite can provide you with fast and affordable employment legal advice. To book a free 15 minute consultation just click ‘Get started’ below.
