The Government has announced that it has accepted the Low Pay Commission’s recommendation on the National Living Wage (NLW) and National Minimum Wage (NMW) to apply from April 2024. The Low Pay Commission was established as an independent body to advise the Government on the minimum wage rates.
This will be the biggest ever increase to the National Living Wage thus far and is set to deliver a pay rise of more than £1,800 a year for a full-time worker. Eligibility for the National Living Wage will also be extended by reducing the age threshold to 21 and 22-year-olds for the first time. Until now, the National Living Wage has been the minimum wage for those only over the age of 23.
The increased rates which will apply from 1 April 2024 are as follows:
| |
NMW Rate
|
Increase in pence
|
Percentage increase
|
|
National Living Wage (21 and over)
|
£11.44
|
£1.02
|
9.8%
|
|
18-20 Year Old Rate
|
£8.60
|
£1.11
|
14.8%
|
|
16-17 Year Old Rate
|
£6.40
|
£1.12
|
21.2%
|
|
Apprentice Rate
|
£6.40
|
£1.12
|
21.2%
|
|
Accommodation Offset
|
£9.99
|
£0.89
|
9.8%
|
WHAT DOES THIS MEAN FOR EMPLOYERS?
As an employer, the National Living Wage and National Minimum Wage is the minimum rate you must pay your employees in Scotland and the rest of the UK. It is a criminal offence for an employer not to pay someone the National Minimum Wage.
In addition, the Government “name and shame” any employer’s found to be failing to pay the national minimum wage on their website. The most recent list of companies named for failing to do so can be found here.
We understand that Employment Law matters can be critical to your business, especially with the upcoming changes in rates. Our team of Employment Law specialists is always available to provide you with personalised advice and support tailored to your specific needs and desires. We are committed to working closely with you to gain a thorough understanding of your business and provide customised solutions that truly make a difference. Our goal is to become the firm you trust to make your world better. We invite you to call us now at 0141 221 1919 to discuss how we can be of assistance.
