What is the minimum wage? Check the current minimum wage in the UK for 2023!
What is minimum wage?
Minimum wages have been defined as “the minimum amount of remuneration that an employer is required to pay wage earners for the work performed during a given period, which cannot be reduced by collective agreement or an individual contract.”
It can be set by statute, decision of a competent authority, a wage board, a wage council, or by industrial or labour courts or tribunals. Minimum wages can also be set by giving the force of law to provisions of collective agreements.
The purpose of minimum wages is to protect workers against unduly low pay. They help ensure a just and equitable share of the fruits of progress to all, and a minimum living wage to all who are employed and in need of such protection.
Minimum wages can also be one element of a policy to overcome poverty and reduce inequality, including those between men and women, by promoting the right to equal remuneration for work of equal value. Minimum wage also provides a base pay rate for employees. That base pay rate is considered to be a fair pay for the work that the employee agrees to. While many employees choose to pay their employees more than the minimum wage, again, the purpose of the minimum wage is to protect all employees from any alterations in the economy.
Current minimum wage in the UK
The United Kingdom has a government-mandated minimum wage, and no worker in the United Kingdom can be paid less than this mandatory minimum rate of pay. Employers in the United Kingdom who fail to pay the Minimum Wage may be subject to punishment by the United Kingdom’s government.
United Kingdom’s Minimum Wage is the lowest amount a worker can be legally paid for his work. Most countries have a nation-wide minimum wage that all workers must be paid.
From April 2023, the national minimum wage for adults over the age of 23 in the United Kingdom will be 10,42 British pounds an hour.
Current minimum wage rates
Minimum wage – increased rates from April 2023
See table below that shows the current minimum wage rates and new rates from April 2023:
| Current rate | New rate from April 2023 | |
| National Living Wage (23 years old and over) | £9.50 | £10,42 |
| National Minimum Wage adult rate (21-22 years old) | £9.18 | £10,18 |
| National Minimum Wage (18-20 years old) | £6.83 | £7,49 |
| National Minimum Wage (16-17 years old) | £4.81 | £5,28 |
| National Minimum Wage (apprentice rate) | £4.81 | £5,28 |
The UK government reviews and establishes this minimum wage every year to ensure that workers receive economic compensation that covers basic living costs.
Workers who don’t qualify for the Minimum Wage?
The minimum wage does not apply to workers who are self-employed, unpaid volunteers, company directors and family members who live in the home of the employer and do household chores.
Who is entitled to minimum wage in the UK?
According to the Government, the national living wage applies to all UK workers, even if they are not paid by the hour. On the other hand, apprentices and workers over the age of 23 also qualify for the minimum living wage rates. Employees working part-time, casual labourers, trainees, and offshore workers are also eligible.
How is the National Minimum Wage Calculated
To calculate the right rates, you need to know that the government includes time spent.
- at work and required to be working
- not working because of a machine breakdown, but kept at the workplace
- waiting to collect goods, meet someone for work or start a job
- travelling in connection with work
- training or travelling to training
- at work and under certain work-related responsibilities
What’s not included:
- travelling between home and work
- away from work on rest breaks, holidays, sick leave or maternity leave
- on industrial action
- not working but at the workplace or available for work
What is living wage in the UK
The term living wage refers to a theoretical income level that allows individuals or families to afford adequate shelter, food, and other necessities.
The goal of a living wage is to allow employees to earn enough income for a satisfactory standard of living and prevent them from falling into poverty. Economists suggest it should be enough to ensure that no more than 30% of this income gets spent on housing. As such, living wages are often substantially higher than the legal minimum wage.
The calculation of the living wage is based on the amount of money which an individual requires to be in a position where they can adequately cover their necessary living costs.
Living costs are different and as such what may be the standard living wage in London may not apply in other places in the United Kingdom.
More often than not, living wages vary greatly.
The living wage gets its promotion from the Living Wage Foundation. This foundation receives a lot of support politically, but it gets a little endorsement from employers. There are organisations which have embraced the concept of the living wage, and they strive to pay their employees by this set amount. The living wage is considered to be an informal benchmark. Given its open status, it is not possible for employees to enforce this minimum level of pay.
Current living wage in the UK
IN April 2023 Living Wage Foundation will increase real Living Wage to £11.95 per hour in London, and £10.90 per hour across the rest of the UK. .
The real Living Wage is calculated and set independently from the UK government, based on actual living costs rather than the median earnings calculations used for the NLW.
Not to be confused with the compulsory National Living Wage (NLW), the Real Living Wage is voluntarily paid by nearly 7000 UK businesses and is based on calculations of the cost of living, carried out by the Living Wage Foundation.
More of this information can be found on europa.jobs
Average earnings in the UK
Have you ever wondered whether you’re getting paid enough? Or whether you’re earning below the average?
When it comes to average earnings in the UK, The Office of National Statistics has released new figures showing the average salary (UK) for over 400 job roles, from gardeners to artists, IT technicians to sales and marketing managers.
The average salary in the UK is £29,600 per year (or £1,950 per month).
Their yearly survey showed that the average salary in the UK for men and women combined was £29,009, which includes those in both full-time and part work. For those in full-time work, the average UK salary is £35,423 and £12,083 for those in part-time.
In the most recent update, salary figures were up an average of 5.4%, with full-time salaries averaging at £38,600 and part-time salaries at £13,803.
The Office of National Statistics, from whom these figures are pulled, calculates the average salary by looking at UK workers’ average weekly salary, as well as the annual survey of hours and earnings.
Not knowing whether you are being underpaid or getting more than average can be frustrating, particularly if you feel like you do most of the workload when compared to your colleagues “Do I get paid enough for the job I am doing!”.
In this section we discuss why it is important to know the average salary and provide current and historical average salaries in the UK, detailed by occupation and supported with a current salary example.
In January 2022, finance and insurance roles had the highest average salary of any industry (£39,936), followed by those in information and communication roles (£38,868).
Unsurprisingly, senior managers, directors, and officials scooped the highest salaries of the bunch, earning an average salary of £58k with a full-time job. Amongst the lowest paying industries were those working in care and leisure, earning an average salary of £19k full time.
Other sectors see quite a differentiation in payment depending on an individual’s job role and qualification. Healthcare, for example, sees average salaries fluctuate between £23,000 and £79,000 depending on your role.
- In your twenties, the average salary for both men and women sits at £26,778 per year.
- In your thirties, the average salary for both men and women sits at £36,983 per year.
- In your forties, the average salary for both men and women sits at £41,789 per year.
- In your fifties, the average salary for both men and women sits at £39,435 per year.
In your sixties and beyond, the average salary for both men and women sits at £34,200 per year.
From your thirties, the averages for men and women top £30,000 per year, sitting around the UK average salary of £35,423. However, the figures for men and women differ due to a 13.7% gender pay gap for full-time salaries between men and women.
You can see this more starkly when you compare the figures side by side:
| Ages Salary | Full-Time Male Salary | Full-Time Female Salary |
| 18-21 | £18,070 | £14,885 |
| 22-29 | £28,386 | £24,715 |
| 30-39 | £39,430 | £34,665 |
| 40-49 | £46,231 | £32,983 |
| 50-59 | £44,561 | £32,052 |
| 60-69 | £37,698 | £27,266 |
Average UK Salary by Age: Part-Time
- In your late teens and early twenties, the average salary for both men and women sits at £6,245 per year.
- In your twenties, the average salary for both men and women sits at £10,758 per year.
- In your thirties, the average salary for both men and women sits at £13,875 per year.
- In your forties, the average salary for both men and women sits at £13,958 per year.
- In your fifties, the average salary for both men and women sits at £13,310 per year.
- In your sixties and beyond, the average salary for both men and women sits at £11,772 per year.
For the UK’s most popular jobs, full-time staff can expect to earn the following:
- IT Technicians – £31,731
- Administrator – £25,050
- Construction Project Manager – £40,549
- Business/Corporate Project Manager – £58,478
- Police Officer – £26,605
- Education Support Assistant – £16,700
- Business Development Manager – £52,500
- Labourer – £28,237
- Receptionist – £17,808
- Sales Executive – £26,302
- Account Manager – £52,500
- Quantity Surveyor – £42,511
- Care Assistant – £18,255
- Chef – £21,282
- Managers – £58,862 (although this varies widely depending on your field)
- Nurse – £32,338
- Electrician – £31,277
- Doctor – £41,494
- Lawyer – £63,771
- Writer – £33,887
- Teacher – £39,388
- Business Analyst – £49,079
- Finance Professionals – £42,578
- Customer Service Advisor – £21,494
- Engineer – £43,628
It’s clear that the UK has diverse opportunities for everyone. The world constantly changes, but what remains steadfast is commitment to work, hard work, persistence and adventure in the UK.
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