Minimum Wage Increase 2024
Here’s some good news for anyone who is being paid minimum wage. As of 1st April 2024, all rates are set to increase.
From 1 April, the National Minimum Wage (NMW) will be categorised into four groups, setting the minimum hourly rate for wages for apprentices, under 18s, 18-20 year olds, and 21 year olds and older.
The increases, compared to recent years, are as shown below…
|
|
Apprentice |
Under 18s |
18 – 20 years |
21 years and over |
|
2024 |
£6.40 |
£6.40 |
£8.60 |
£11.44 |
|
2023 |
£5.28 |
£5.28 |
£7.49 |
- |
|
2022 |
£4.81 |
£4.81 |
£6.83 |
- |
Prior to 1st April 2024, the category for 21 years and over was separated as 21 – 22 years and 23 years and over. These two groups have now been re-categorised as 21 years and over.
As you can see, Apprentices and Under-18s will enjoy a £1.12 / hour increase, with 18 – 20 year olds receiving an extra £1.11 / hour. In 2023, the rate for 21–22 year olds was £10.18, so those aged 21 and over will see a £1.26 raise in their hourly rates.
While employers are legally bound to pay the NMW, some may choose to pay the higher amount set out as the National Living Wage (NLW). The NLW is a recommended amount that can be paid voluntarily and is calculated independently of the NMW. Employers may find it helpful to use a wages calculator to determine the NLW for their employees.
The new NLW will be £11.44, which is two-thirds of the median hourly pay for workers over 21. This is an increase of £1.02 compared to the current NLW, equating to a 9.8% increase. The age threshold to receive the NLW has also been lowered, meaning that all workers over 21 will be eligible to receive it should their employer choose to pay it.
All employers must abide by the NMW, or wages minimum, regardless of whether their staff are full-time, part-time, or working casual hours. The NMW can be paid by cash, cheque, or bank transfer and applies to the whole of the UK.
At Ellacott Morris, our payroll services are used by many of our clients, and we will be in touch with you all regarding any changes. Please ensure that you communicate these changes to your employees – it’s important they understand why their wage packets have increased.
If you find payroll and changes such as these a bit overwhelming, then why not get in touch and discuss our payroll services with James, our payroll guru? He can explain exactly how our services work and how they can benefit your business.
We’re here to help, so contact us today, and let’s talk about payroll!
E - payroll@ellacottmorris.co.uk
T - 01255 425059
