This is a reminder for businesses to budget and plan for the forthcoming change to the National Living Wage banding. Currently, the National Living Wage (NLW) applies to workers who are aged 23 and over, but from 1 April 2024 this minimum age will be lowered, so that the NLW will apply to all workers aged 21 and over.
Implications for 21-Year-Old Workers
The implication of this change means that a 21-year-old will effectively get a 12.4% increase from 1 April because the current minimum rate for this age group is £10.18 but because of the threshold change in April, their new statutory minimum hourly rate will become £11.44; this is worth almost £2,300 a year to someone who works full time.
National Minimum Wage Adjustments
The budget implications of this could be significant, especially for small businesses; here is a summary of the forthcoming changes to minimum rates of pay:
- Apprentices: the rate will increase from £5.28 per hour to £6.40 per hour
- Workers 21 and over: the new hourly rate will be £11.44 (currently those who are 23 and above receive £10.42)
- Workers 18 to 20: the rate will increase from 7£.49 to £8.60.
- Workers: Under 18 (not an apprentice): the rate will increase from £5.28 to £6.40.
All of these increases come into force from 1 April 2024.
HR and Payroll Support
If you require support with your payroll or any other HR-related issues, please call HR Solutions on 0844 3245840.
