In April 2024, the UK Government will implement the Largest National Minimum Wage Increase to date. The pay boost, worth £1,800 a year for a full-time worker, will benefit 2.7 million workers, according to an estimate from the Department for Business and Trade.

Employers should pay careful attention to which employees will be affected by the increases.

The national minimum wage, also known as National Living Wage, will increase to £11.44 per hour for workers over 21 from April 2024.

The minimum wage is currently set at £10.42 per hour for workers over 23, and to £10.18 per hour for workers aged 21-22. When the new rate takes place in April, this will represent an increase of 9.8% for over 23s, and of 12.4% for over 21s.

National Minimum wage rates for younger workers will also increase. 18-20-year-olds will also get a wage boost to £8.60 per hour – a £1.11 hourly pay bump.

It would be worth getting to grips with this as soon as possible. Employers will need to update payroll systems, forecast budgets and communicate with your employees ahead of this.

Employers may also need to check their lower paid staff contracts to ensure they are now earning the minimum wage dependant on how many hours they work.

An illustration of how this might work can be seen below:

From 1 April 2024, workers aged 21 and over will be entitled to the National Living Wage.

This means on a 37.5 hour week minimum salary would be - £22,308 or on a 35 hour week £20,820 so for low salaried roles keep in mind these roles are being offered at the National Living Wage.

If you need further information the government site has all the updated info here: https://www.gov.uk/government/publications/minimum-wage-rates-for-2024

Or feel free to give us a call and we’ll talk you through what needs to be done - 01442 600 100.

#NLW2024 #UKBusiness 

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