National Minimum Wage increases from 1 April 2024

The new rates

National Living Wage (21 and Over)

• NMW rate from 1 April 2024: £11.44
• Increase in pence: £1.04
• Percentage increase: 9.8%

18-20 Year Old Rate

• NMW rate from 1 April 2024: £8.60
• Increase in pence: £1.11
• Percentage increase: 14.8%

17-18 Year Old Rate

• NMW rate from 1 April 2024: £6.40
• Increase in pence: £1.12
• Percentage increase: 21.2%

Apprentice Rate

• NMW rate from 1 April 2024: £6.40
• Increase in pence: £1.12
• Percentage increase: 21.2%

Accommodation Offset

• NMW rate from 1 April 2024: £9.99
• Increase in pence: £0.89
• Percentage increase: 9.8%

Our comment

It is important to remember that the right to be paid at least the statutory minimum wage applies to “workers”, which is a wider definition than employees and might include casual staff, agency staff and individual contractors. Penalties for non-compliance with the NMW are high so employers will need to ensure their payroll systems are set up and ready to apply these NMW rises.

It is not necessary for a worker to be paid the NMW for every hour they work as long as, on average, they receive the NMW for the hours they work in a pay reference period.

Also bear in mind that whilst the new rates apply from 1 April 2024, they do not need to be paid from that date if it falls in the middle of a pay reference period. The new rates must be paid from the start of the first pay reference period to begin on or after 1 April 2024.

Explore more updates in this issue of Employment Matters below.

Find out more about our Employment & Immigration team, and how they can support you here.