From the 1st April, both the National Minimum Wage (NMW) and the National Living Wage (NLW) will increase.
The government accepted the Low Pay Commission’s recommendations for the NMW/NLW to be applied in full for pay periods starting on or after 1st April 2024.
The NLW is currently the statutory minimum hourly rate which must be paid to those aged 23 and over, this will fall to 21 and over from April 2024.
- For workers aged 23 and over the current NLW hourly rate of £10.42 will increase by 9.8% to £11.44.
- For workers aged 21-22 the current NMW hourly rate of £10.18 will change to the NLW and will increase by 12.4% to £11.44.
- For workers aged 18-20 the current NMW hourly rate of £7.49 will increase by 14.8% to £8.60.
- For workers aged 16-17 the current NMW hourly rate of £5.28 will increase by 21.2% to £6.40.
- For apprentices* the current NMW hourly rate of £5.28 will increase by 21.2% to £6.40.
- The accommodation offset rate will increase by 9.8% from £9.10 to £9.99.
*Apprentices are entitled to the apprentice rate if they are either:
- Aged under 19
- Aged 19 or over and in their first year of their apprenticeship
These changes will be the largest ever cash increase to the NMW, and the first time that the hourly rates have increased by more than £1.
It is important for employers to understand these increases in pay rates. In particular the change of the NLW to younger workers aged 21 years and over.
For a worker currently receiving the NLW who works 37.5 hours per week, these increases will mean that they will receive an additional monthly gross pay of £166.20.
