With a new financial year underway it’s important to be aware of the increases to the National Living Wage and National Minimum Wage.

It’s imperative for recruitment agencies and their clients to fully prepare and ensure compliance.

The National Minimum Wage applies to workers who are at least school-leaving age whilst the National Living Wage applies to people who are 23 or over.

What’s changed?

• National Living Wage (23+) – increased 6.6% from £9.50 to £10.42
• National Minimum Wage (21 – 22) – increased 10.8% from £9.18 to £10.18
• National Minimum Wage (18 – 20) – increased 9.6% from £6.83 to £7.49

National Living Wage increases are based primarily on advice from the Low Pay Commission (LPC) and are designed to help workers and families continue to fight continued issues caused by the cost of living crisis. National Minimum Wage increases are based on recommendations from businesses and trade unions.

The increases will affect the minimum rate that recruitment agencies will need to pay contractors through Crest Plus.

How are CIS-registered workers affected?

We are the largest CIS provider within FCSA and work closely to ensure compliance is fully supported. We support the continual review of codes to ensure we all stay in line and ahead of best practices. As such, FCSA feels the CIS minimum rate also needs to increase in line with inflation – a view we fully support.

From April 1st, 2023, all new CIS contractors that are registered with Crest Plus will receive a set minimum hourly rate.

If you are a recruitment business and have any questions about the increases, please speak to your Account Director or get in touch on 01244 684700.