From 1 April 2024, the National Minimum Wage (NMW) and National Living Wage (NLW) rates are increasing substantially – placing additional pressure on your payroll and business.
National Living Wage
From this date, the NLW will reach £11.44 per hour – a substantial rise of £1.02 per hour or a 9.8% increase.
To complicate matters further, the eligibility age for the NLW has been lowered, making all workers aged 21 and over eligible for this higher rate.
This is a crucial update that broadens the scope of the NLW, impacting many employers and their payroll considerations.
National Minimum Wage
Furthermore, the NMW rates for younger workers and apprentices will also see changes:
- For 18-20-year-olds, the rate will rise to £8.60 per hour (up 14.8%).
- For 16-17-year-olds, the new rate will be £6.40 per hour (up 21.2%).
- The Apprenticeship rate will increase to £6.40 per hour (up 21.2%).
These updates necessitate a review and adjustment of your payroll processes to comply with the new wage standards and eligibility requirements.
Here to help
Understanding and implementing these changes can be challenging so our dedicated team is here to assist you in navigating these adjustments smoothly.
Our team can offer guidance on payroll management, financial planning, and strategies to mitigate the impact of increased labour costs on your business.
We encourage you to reach out to us for a detailed discussion on how these changes may specifically affect your business and to explore tailored solutions that meet your unique needs.
If you need any help with your payroll, please get in touch.