EEA: NLW Increase

The Chancellor, Jeremy Hunt, has delivered the Autumn Statement, find out what this means for the wage bills of equestrian employers.

In his Statement, the Chancellor confirmed the government will accept a recommendation from the Low Pay Commission to increase the National Living Wage (NLW) next year by 9.7%.

How much is the increase?

The National Living Wage (NLW) will increase by 92 pence per hour. 

For the average* groom of 23+ years old this means their wages will rise by £215.28 per month.

*The average groom works 07:30-17:30 (9 hrs), 6 days per week, a total of 54 hours per week. Meaning the increase in NLW provides a rise in wages of £2,583.36 per annum.

54 x 0.92 = £49.68 (increase in wages per week)
49.68 x 52 = £2,583.36 (increase in wages per annum)
£2,583.36 / 12 = £215.28 (increase in wages per month)

The same groom working a 5-day week will see an annual increase of £2,152.80 per annum.

A busy competition groom on the circuit and working on average 70 hours per week will benefit from an increase of £3,348.80 per annum.

THE RISES TO THE NATIONAL MINIMUM WAGE 

The NMW will also rise as of 1st April, with the new rates as per: 

• Increasing the rate for 21-22 year olds by 10.9% to £10.18 an hour
• Increasing the rate for 18-20 year olds by 9.7% to £7.49 an hour
• Increasing the rate for 16-17 year olds by 9.7% to £5.28 an hour
• Increasing the apprentice rate by 9.7% to £5.28 an hour; and
• Increasing the accommodation offset rate by 4.6% to £9.10 an hour (£63.70 per week)

When will the increase happen?

1st April 2023.

Is EVERYONE ENTITLED TO A PAY RISE?

If employees are already paid above the NMW or NLW their pay does not have to increase, as long as their wage does not fall below the minimum rates for every hour they work. 

The EEA is here for you and your business. If you need support, you can get in touch with us at any time here. If you’re not a member yet have a look at how we can help you, JOIN NOW for just £49.50.