The National Living Wage in 2022 is set to rise by 59p to £9.50.
The Low Pay Commission (LPC) recommended this rise for 2022 and the recommendations were accepted in full by the Government.
The LPC is an independent public body that advises the Government each year on the rates of the National Living Wage, which is the minimum pay per hour workers over the age of 23 are entitled to.
It does not matter how small an employer is, they still have to pay the correct minimum wage. It is illegal for an employer to pay any workers over 23 less than this rate.
. The report by the LPC considered, amongst other things:
- Economic conditions
- Business conditions
- The Labour market
- Jobs recovery
- Pay in the recovery
- The Coronavirus Job Retention Scheme
- Pay growth for low-paid workers
- Prospects for the economy
What does this mean for you?
If you are a full-time worker working 35 hours per week, this will mean an additional £1000 per year.
However, National Insurance rates are also due to rise from 6th April by 1.25%.
Other National living wage rates are shown below:
National Minimum Living Wage Rates 2022-23
|Rates from April 2022||Current Rate (April 2021 to March 2022)|
|National Living Wage||£9.50||£8.91|
What you need to do as an employer
It is essential that you comply with these new rates and ensure your payroll is updated to reflect the changes to both the National Living Wage rates and National Insurance Contributions.
If you need help implementing these changes within your accountancy software, get in touch with us at Maynard Johns as we have trained advisors on hand to help you.
You may also wish to contact us to undertake a business review to see what impact these changes may have on your business finances over the next year.
You can get in touch with us via our contact form or call 01237 472071.