Last week the Government announced the National Minimum Wage and the National Living Wage will rise, coming into effect on the 1st April 2024.
NMW Rate | Increase in pence | % increase | |
National Living Wage (21 and over) | £ 11.44 | £ 1.02 | 9.8% |
18-20 Year Old Rate | £ 8.60 | £ 1.11 | 14.8% |
16-17 Year Old Rate | £ 6.40 | £ 1.12 | 21.2% |
Apprentice Rate | £ 6.40 | £ 1.12 | 21.2% |
Accommodation Offset | £ 9.99 | £ 0.89 | 9.8% |
Currently the National Living Wage applies to workers aged 23 and over, this is also changing on the 1st April 2024 to include workers aged 21 and 22.
The Low Pay Commission recommended the changes based on the strength of pay growth across the economy and the financial forecast for next year. This is the first time the NMW has increased by over £1 per hour, signifying the largest increase in a single year.
For employers, the rise in the national minimum wage, while aiming to improve the living standards of low-wage workers, could pose significant challenges. Striking a balance between supporting workers and ensuring the viability of businesses remains a complex challenge.
To speak with our Employment team about the changes and how this might affect your business, please visit our website.
Further information is available on the Government website. Minimum wage rates for 2024 – GOV.UK (www.gov.uk)