Solicitor Aoife McGrath, in our Employment Law team, outlines the changes to the National Living Wage (NLW) and National Minimum Wage (NMW), set to take effect from 1 April 2024.
In the autumn statement on 21 November 2023, the Government announced increases to the National Living Wage (NLW) and National Minimum Wage (NMW), set to take effect from 1 April 2024.
The changes were expected and saw the Government implement the recommendations of the Low Pay Commission (LPC), an independent advisory body within the Department for Business, Energy and Industrial Strategy, in full.
Chair of the LPC, Bryan Sanderson, said: “Our new recommendation of a National Living Wage of £11.44 attempts to steer a path through this uncertainty and achieve the government target of two-thirds of the median wage, an outcome which if accepted would position the U.K. at the forefront of comparable economies.”
The NMW, divided into two tiers, is the minimum hourly rate that employers must pay to workers aged between 16 and 20. The NMW applies to full-time, part-time, casual and agency workers, and some apprentices. For apprentices aged under 19 and those aged 19 or over in the first year of their apprenticeship, the apprentice rate will instead apply.
The NLW is the minimum hourly rate employers must pay workers aged 21 and over. The threshold to receive the NLW was reduced this year and previously applied to workers aged 23 and over.
The rates which will apply from 1 April 2024 are as follows:
|
Rate from 1 April 2023 |
Rate from 1 April 2024 |
Increase |
|
|
National Living Wage (NLW) |
£10.42 |
£11.44 |
9.8% |
|
18-20 year old rate (NMW) |
£7.49 |
£8.60 |
14.8% |
|
16-17 year old rate (NMW) |
£5.28 |
£6.40 |
21.2% |
|
Apprentice rate |
£5.28 |
£6.40 |
21.2% |
|
Accommodation offset |
£9.10 |
£9.99 |
9.8% |
Our specialist Employment Law team can advise employees and employers on the full range of Employment Law matters.
For further information or legal advice, please contact law@blandy.co.uk or call 0118 951 6800.
This article is intended for the use of clients and other interested parties. The information contained in it is believed to be correct at the date of publication, but it is necessarily of a brief and general nature and should not be relied upon as a substitute for specific professional advice.
