The Government has announced one of the largest National Minimum Wage rises ever, lifting the National Living Wage payable to those over 23 to £11.44 per hour from April next year. This is an increase of 9.8% on the current £10.42 per hour.
Additionally the National Living Wage, currently payable to those over 23, will also now apply to those who are 21 and 22 years old as well, equating to a 12.4% increase for those workers. For a full time worker aged 23 this would equate to an additional £1,800 per year and for someone aged 21 this would be a further £2,300 pay rise.
The NMW for 18-20 year olds will also increase to £8.60 per hour (currently £7.49) and apprentices will be due £6.40 per hour (currently £5.28).
These are very significant increases to the NMW rates reflecting the pressures brought about by higher inflation and in particular the pressure caused by increased energy and food bills. A good many employers will need to revisit their 2024 budgets following this announcement as most will not have planned for increases of this much.
If you have any queries relating to NMW or payment of wages generally please do contact our specialist Employment Team on 0345 646 0406 or fill in our online enquiry form for more information and a member of our Team will be very happy to assist.