From 1 April, the national living wage increased to £10.42 in 2023, an increase of 9.7% on the previous year.
This increase can be said to have eased the living pressure of workers, and to a certain extent balanced the rise in prices.
However, this rise may face a chain reaction such as a series of taxes.
2023 Minimum Wage
Workers aged 23 or over will see the national living wage rise by 9.7% to £10.42 an hour from this month.
Not only that, but the minimum wages for other age groups have also been increased accordingly and reflected in this month’s payroll.
This also means that if your salary is minimum wage, you are entitled to a higher raise.
If you’re running a business, take extra care that all of your employees should be paid equal to or above that amount by the hour.
How to Determine the Minimum Wage for an Apprenticeship
Apprentices need to meet their age requirements to be under 19 or over 19 and in their first year of apprenticeship.
Then they will enjoy the hourly rate of apprenticeship.
If the apprentice is over 19 years old and has completed the first year of apprenticeship.
Then they will be paid the hourly rate corresponding to their age instead of the apprenticeship rate.
Real Wage Growth May Balance Price Rise
Economists at the think tank said inflation was expected to fall to around 7% in April, a change that would lead directly to real wage growth for low-income households.
Since many factors are currently affecting the inflation rate, any estimated data will have certain deviations.
Any high risk investments and mortgages are still not recommended.
Income Tax Threshold Drops
On April 6, the threshold at which top earners start paying the top tax rate will fall from £150,000 to £125,140.
On top of that, the chancellor has frozen the threshold at which people start paying higher tax rates.
Obviously, people may end up paying a little more when they get a raise, with a smaller share of tax-free income.
Minimum Wage Worldwide
Basically, all countries will adjust their minimum wage standards according to the economic environment and national conditions in previous years.
We checked recent data and reports and found the top ten countries.
