The UK Government has raised the minimum wage rate for workers in the UK. The new minimum wage will be £10.42 per hour, a 9,7% increase on the current minimum wage rate. The increase will occur in April 2023. It bodes good news for many persons wanting to work in the UK and current migrant workers!
The decision to raise the minimum wage comes after the UK Government accepted recommendations by the Low Pay Commission (LPC). The LPC advises the Government on the minimum wage. Business, trade union and academic representatives of the LPC unanimously agreed on the recommendations for a new minimum wage.
Minimum Wage Recommendations
The LPC made the recommendations against the backdrop of a tight labour market where unemployment is at a record low and vacancies in the UK remain high. The Chair of the LPC, Bryan Sanderson, said that the increases would support the wages and living standards of low-paid workers. He said they are confident that the UK economy will absorb these increases. Especially, in light of the high vacancy rates and tightness of the UK economy.
The increase in the UK minimum wage is the largest increase since its introduction in 2016. For a full-time worker working at the minimum wage, the increase would mean nearly £150 more per month!
The National Living Wage or NLW is the statutory minimum wage for workers in the UK aged 23 and over. There are different wage rates for younger workers.
New National Living Wage Table
| Rates from April 2023 | Current Rates | Increase in % | |
| National Living Wage | £10.42 | £9.50 | 9.7% |
| 21-22 Year-Old Rate | £10.18 | £9.18 | 10.9% |
| 18–20 Year-Old Rate | £7.49 | £6.83 | 9.7% |
| 16-17 Year-Old Rate | £5.28 | £4.81 | 9.7% |
| Apprentice Rate | £9.10 | £8.70 | 4.6% |
How will the New Minimum Wage benefit Overseas Workers
The announcement of the new minimum wage is good news. It shows that the UK Government is serious about its commitment to reaching its target of two-thirds median earnings by 2024. Two-thirds of median earnings will benefit all overseas workers in the UK. Better wages and salaries will allow workers a higher living standard.
The fact that the UK Government has accepted the recommendations shows that the UK labour market currently has several vacancies. Overseas workers wanting to work in the UK can thus be assured that there are openings in the labour market and opportunities await.
The increase in the minimum wage also bodes good news for overseas workers in the UK working in lower-skilled jobs. Overseas students working part-time jobs, dependants of visa holders and ancestry visa holders in lower-skilled positions will see their wages increase from April 2023.
How Breytenbachs can help you to work in the UK
There are many different immigration routes available to overseas workers wanting to work in the UK. Clients are often surprised to hear that they qualify for some of the advantageous permits and visas that will allow them to work in the UK.
Contact Breytenbachs today and find out how you can further your career or business in the UK! Please get in touch with us via email at [email protected]. Or phone your nearest Breytenbachs office: Durban – 031 880 2777, Cape Town – 021 879 0969 or Pretoria – 012 460 9959. You can reach our London office at +44 207 442 2160.
