12 March 2024
National Minimum Wage Increase in April 2024
In November 2023 the Government announced its acceptance of the Low Pay Commission’s recommendations on minimum wage rates to apply from April 2024. Along with the changes in National Insurance, the wage increases can mean you may need to spend more time on making sure you get it right.
If you struggle with finding the time to keep up to date with all the changes in payroll then please give us a call. We can offer a full payroll service designed specifically to suit your businesses requirements.
April 2024 Changes
From 1 April 2024 there will be an increase in the national living wage. Please note that the threshold for workers has changed and workers aged 21 and over will also be entitled to the National Living Wage (in previous years it was workers aged 23 and over).
To qualify for the National living wage employees must be at least:
- school leaving age to get the National Minimum Wage
- aged 23 (21 from April 2024) to get the National Living Wage - the minimum wage will still apply for workers under the threshold
Current Rates
| 23 and over | 21-22 | 18-20 | Under 18 | Apprentice | |
| 2023 | £10.42 | £10.18 | £7.49 | £5.28 | £5.28 |
You can find the current rates here.
2024 Rates
| NMW Rate | Increase £ | Percentage Increase | |
| National Living Wage 21 and over |
£11.44 | £1.02 | 9.8% |
| 18 - 20 year olds | £8.60 | £1.11 | 14.8% |
| 16-17 Year Olds | £6.40 | £1.12 | 21.2% |
| Apprentice Rate | £6.40 | £1.12 | 21.2% |
Apprentices are entitled to the apprentice rate if they’re either:
- aged under 19
- aged 19 or over and in the first year of their apprenticeship
Example: An apprentice aged 21 in the first year of their apprenticeship will be entitled to a minimum hourly rate of £6.40.
Apprentices are entitled to the minimum wage for their age if they both:
- are aged 19 or over
- have completed the first year of their apprenticeship
Example: An apprentice aged 21 who has completed the first year of their apprenticeship will be entitled to a minimum hourly rate of £11.44.
Living Wage
The real Living Wage is the only UK wage rate based on the cost of living. It is voluntarily paid by over 14,000 UK businesses who believe their staff deserve a wage which meets everyday needs - like the weekly shop, or a surprise trip to the dentist.
You can find out more about the Living Wage here: www.livingwage.org.uk/what-real-living-wage
Haines Watts Payroll
We can help with all areas of payroll from sending payslips to your staff to making payments to the Revenue, calculating Statutory Sick Pay and Holiday pay to providing End of Year Submissions and accounting information for Self-Assessment Tax Returns.
Find out how we can help you free up you time to focus on your business while we manage your payroll. We can manage your payroll function by ensuring we file and report on time and accurately. Find out more about the payroll services we can offer here.
Author
Louise Hollands
Associate
