Posted Date: 12th February 2024

National Minimum Wage and National Living Wage

The Government has announced National Minimum Wage rates from 1st April 2024, including the National Living Wage.

The National Living Wage age band will also be expanded to include workers aged 21 and over. 

• The National Living Wage (for people aged 21 or older) will increase from £10.42 to £11.44 per hour.
• The National Minimum Wage for workers aged 18–20 will increase from £7.49 to £8.60 per hour.
• The young workers rate for workers aged 16–17 will increase from £5.28 to £6.40 per hour.

The apprentice rate for apprentices under 19, or over 19 and in the first year of the apprenticeship, will increase from £5.28 to £6.40 per hour.

Other Changes to Statutory Rates

For any statutory payments due on or after Sunday 7^th April 2024, the following proposed new rates will apply:

• Statutory sick pay will increase to £116.75  (previously £109.40).
• Statutory pay for shared parental, maternity, adoption, paternity and parental bereavement pay is proposed to rise to £184.03 (previously £172.48).

The lower earnings limit (LEL), below which employees do not qualify for these statutory payment rates, will remain unchanged at £123 per week.

What should you do?

We recommend that you conduct a pay audit on your workforce, before April 2024, to ensure that all employees are paid within the correct bracket. You should also check the birthdays of workers over the next 12 months, as they may be entitled to an increase part way through the year which you should diarise or increase from 1st April in advance.

All workers, except for those who are genuinely self-employed, are entitled to the National Minimum / Living Wage.