Minimum wage increases come into force from 1st April each year and this year is no exception, with the latest rates being announced in the 2024 Budget. If you have not already done so, now is the time to check you have the appropriate pay adjustments in hand.
What are the New Minimum Wage (NMW) and National Living Wage (NLW)?
The new rates will be:
- Age 21 or over (National Living Wage rate): £11.44 (up from £10.42).
- Age 18 to 20: £8.60 (up from £7.49).
- Age 16 to 17: £6.40 (up from £5.28).
- Apprentice rate: £6.40 (up from £5.28).
- Accommodation offset £9.99 per day (up from £9.10).
This year marks a significant change – the National Living Wage rate applies to individuals aged 21 and above, departing from the previous age threshold of 23 years and above.
What you need to do
It is important to ensure that you are ready for the changes as there may be some members of staff who are affected by the NMW/NLW increase. If this is the case, we recommend taking the following steps:
- Take the relevant payroll action.
- Write to all affected employees to inform them of their new rate of pay.
- Diarise the birthdays of your employees aged under 21 and note when their rate of pay will increase.
- Review pension contributions which may need to be updated (typically calculated as a proportion of basic pay)
- Review the affected employees to see whether they will now fall within the scope of pension automatic enrolment, maternity pay, etc.
Find out more
For more help and advice for employers on employee pay, and any other employment advice, please visit our dedicated employment law pages or contact our employment team directly.
