Changes are on the horizon as minimum wage rates are set to increase from 1st April 2024.
The increases are substantial and apply across the board to all National Minimum Wage rates and the National Living Wage rate.
The minimum wage a worker should get depends on their age and if they are an apprentice.
The National Minimum Wage is the minimum pay per hour almost all workers are entitled to.
However, the National Living Wage is higher than the National Minimum Wage and, from April the age of eligibility will be lowered from 23 to those workers aged 21 year and over.
In essence, the removal of the National Minimum Wage band for 21 to 22-year-olds entitles those workers to an increase of 12.4%
The table below outlines the current and new minimum wage rates to take effect from 1st April 2024.
It is worth noting that while the principle behind the national minimum wage may appear simple, the underpinning legislation is quite complex.
Unfortunately, employers may find they fall foul of the legislation depending on the type of contract an employee is working under, how often the employee is paid, what items are included in the minimum wage calculation and what written agreements are in place.
While employers should ensure they apply the new rates of pay in their April payroll, it may be prudent to ensure employment contracts are up to date and that there are no deductions being made that would bring a worker to below their minimum wage.
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