The national living wage is increasing from £9.50 to £10.42 per hour in April - the most significant annual rise since its introduction in 1999.

This 9.7% pay rise will affect around 2 million workers aged 23 and over, up from 1.6m in 2022. Employees aged between 21 and 22 will see their pay increase by 10.9% from £9.18 to £10.18 an hour.

The wage for 18 to 20-year-olds will also rise from £6.83 to £7.49, while wages for workers aged 16 to 17 and apprentices will increase from £4.81 to £5.28.

The changes will apply in the next pay reference period after 1 April 2023. So, if a staff member is paid on the 20th of each month, the new rate will apply from 21 April onwards.

This means that many businesses still have time to ensure their payroll reflects these changes. Keeping an eye on upcoming employee birthdays can also help avoid non-compliance fines.

Speaking on the changes, Nye Cominetti, senior economist at the Resolution Foundation, said:

"This latest rise isn't just delivering a much-needed pay rise, it has transformed earnings across Britain over the past quarter of a century - reversing rising pay inequality and halving levels of low pay."

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