Changes to the rates and National Minimum Wage will mean that more employees will be eligible for the National Living Wage. Employers should pay careful attention to which employees will be affected by the increases.
The Government has accepted the Low Pay Commission’s recommendations on the national minimum wage rates, which will apply from 1 April 2024.
It will be the largest ever increase in the minimum wage in cash terms and the first time is has been increased by more than £1. The size of this increase is driven by the strength of pay growth across the economy, which is forecast to continue into the next year.
The changes mean:
- The National Minimum Wage for 18- to 20-year-olds rises from £7.49 to £8.60 an hour.
- The National Minimum Wage for under-18s will rise from £5.28 to £6.40 an hour.
- The apprentice rate goes up from £5.28 to £6.40 an hour, and will apply to people under 19, or people over 19 in their first year of their apprenticeship.
- The National Living Wage (currently applicable to those over-23) rises from £10.42 an hour to £11.44 an hour.
- The National Living Wage age threshold will be lowered to 21. Those aged 21 to 22 will be eligible for the National Living Wage from April 2024, so they will receive £11.44 an hour, up from £10.18 an hour.
From 1 April 2024 employers will be required to pay their employees at least the new minimum wage rates according to the employee’s age and employment status.
Employers will need to ensure that they are prepared for the wage increase costs. Check which employees will be affected by the changes so that you can calculate their new wages accurately and begin paying them the new rates at the right time.
For help and advice on this topic or related issues, please contact Chris Cook by calling 01727 798089 or email email@example.com.