As the end of the 2022/2023 financial year approaches, we have provided a breakdown below of the updated rates and thresholds to prepare for the 2023/2024 financial year:
NMW/NLW
From April 2023 the national living wage (NLW) and national minimum wage rates (NMW) will increase again - the over 23 rate increases to £10.42 per hour, which is up from £9.50 in 2022. The updated rates from April 2023 are as followed:
Anyone aged 23 & over – NLW increases to £10.42 per hour – from 2024, the age is lowered to 21 years old.
21- and 22-year-olds, the rate will be £10.18 per hour.
Aged 18 – 20, the rate will be £7 .49 per hour.
Aged under 18 it will be £5.28 per hour.
The apprentice rate will increase to £5.28 per hour.
Statutory Payments
Statutory payment rates will also increase from April 2023. The changes in rates are as followed:
Statutory maternity, paternity, adoption, shared parental and parental bereavement pay will all be set at £172.48 per week.
Statutory sick pay will be set at £109.40 per week.
Student Loans
The threshold for student loans has risen per plan. The thresholds are as stated below:
Plan 1 - £22,015.00 annually
Plan 2 - £27,295.00 annually
Plan 4 - £27,660.00 annually
Tax and National Insurance
The main Tax and National Insurance threshold levels will remain the same as 2022 and the standard tax code remains unchanged from 1257L. These levels will stay fixed until (and including) the 2027/2028 financial year. The additional rate threshold (for tax) is currently set at £150,000 but will decrease to £125,140 on 6 April 2023.
Whilst the increases will be welcomed by workers, employers will need to carefully plan and prepare for the increased costs the higher rates will incur.
More can be found regarding thresholds and rates on the government website: