UK National Minimum Wages Rates in 2023
The UK government has announced a new increase in the National Minimum Wage (NMW) rates for 2023, which will see millions of workers across the country receive a pay rise. The new rates will take effect from April 1, 2023.
According to the announcement, the new NMW rate for workers aged 23 and over will increase from £9.50 to £10.42 per hour, marking a 9.7% increase. Meanwhile, the rates for workers aged 21-22 will increase from £9.18 to £10.18 per hour, and the rate for workers aged 18-20 will increase from £6.83 to £7.49 per hour. The rate for workers under the age of 18 will also increase from £4.81 to £5.28 per hour.
With these new regulations in place, employers in the workforce management and staffing industry must adjust their practices to ensure compliance and fair compensation for their employees.
Know the Current Minimum Wage Rates
The minimum wage rate varies depending on the age and status of your employees. Ensure you know the current rates to guarantee you pay your employees the correct amount. You can find the complete list of current rates on the UK government website.
Review Contracts
Review your employees' contracts and job descriptions to ensure that they accurately reflect the work they are doing and the pay they are receiving. Make any necessary adjustments to ensure that you are meeting the minimum wage requirements.
Keep Accurate Records
You should keep accurate records of your employees' working hours and pay to ensure that you are meeting the minimum wage requirements. This includes tracking any overtime or additional hours worked. The easiest way to do it is using a staff management software solution with overtime and pay rate features. PARiM lets you set up customisable automatic pay rates to ensure compliance with NMW.
Charge Your Clients Appropriately
For temporary workforce management companies and staffing agencies, new minimum wage requirements mean growing operational costs, which makes it important for these organisations to adjust their pricing. With PARiM Pay & Charge manager, you can set up custom charge rates for each scheduled hour. This gives you a side-by-side overview of your operational costs and revenue to make sure that your staffing business is running smoothly while not having to worry about compliance.
Already Using PARiM?
If you are already using PARiM in the UK, make sure you update your Pay & Charge rules following these instructions.
