National Minimum Living Wage and other statutory rate increases for 2023/24

The National Minimum/Living Wage and other statutory rate increases for 2023/24 have now been published by the Department for Work and Pensions. The increased rates take into account the rising rate of inflation and the current cost-of-living.

The National Minimum Wage (NMW) (for those ages 23 and over) and National Living Wage (NLW) (for those of at least school leaving age) will increase as follow:

Of significance, the NLW will rise by 9.7%, reflecting the increased cost-of-living in the UK.

The other key statutory rate increases that schools should be aware of are as follows:

• statutory maternity, paternity, adoption, parental bereavement and shared parental pay will increase to £172.48 per week (previously £156.66 per week); and
• the rate for statutory sick pay will increase to £109.40 per week (previously £99.35 per week).

The above changes will be effective from 1 April 2023.

The current government guidance on the NLW and NMW is available here, with further detail on the statutory rate increases available here.

Impact on schools

Schools will be expected to comply with the new rates from 1 April 2023. We recommend that they update their policies, procedures, and practices accordingly and undertake a review of any employees who are absent from work in the period leading up to April 2023 to ensure that their pay is increased in line with the new rates from 1 April.