National Minimum Wage increases from 1 April 2024

The National Minimum Wage

The National Minimum Wage was introduced in 1999 and is increased annually in April.

It is set by the independent Low Pay Commission which, each year, recommends what the minimum wage should be. Its recommendations are usually (but not always) followed.  

Despite inflation dropping back to much more comfortable levels, the Chancellor announced in the Autumn Statement 2023 that the National Minimum Wage would increase from 1 April 2024 by between 9.7% and 12.4% across the various categories.

The biggest uplift comes about due to the full minimum wage of £11.44 now applying to everyone over the age of 21, not 23 as previously.

From 1 April 2024, the new rates will be:

  • Age 21 or over: £11.44

  • Age 18 to 20: £8.60

  • Under 18s: £6.40

  • Apprentice rate: £6.40

The National Minimum Wage is a legal requirement that all employers must adhere to, subject to certain allowances, which you can find out about in the “Who does not have to be paid the National Minium Wage?” section on our website.

Minimum Wage or Living Wage

Whilst the National Minimum Wage is a legal obligation, some (mostly larger) businesses choose to pay the ‘Real Living Wage’ which is set by the Real Living Wage Foundation

The ‘Real Living Wage’ is voluntary, and currently stands at £12.00 outside London and £13.15 for those working in the Capital.

What do you need to do?

Firstly, you need to review your workforce and ensure that any existing minimum wage employees have their hourly rate updated with effect from 1 April (don’t forget to let us know if we run your payroll for you). 

Secondly, you will also need to apply the new rates to new starters and to any team members who pass through one of the age-related thresholds indicated above - so make sure your procedures‘ capture’ all affected. 

Finally, you need to consider updating employment contracts to reflect the new rate - something that ATN Partnership can help with. If you need us, just contact us to chat things through.

Talk to us

If you would like clear, concise, and easy to understand help and advice on any issues that you are concerned about, then you can contact us on 01474 326224. Alternatively, visit our website or email us info@atnpartnership.co.uk.