On 21st November 2023 the Government announced its acceptance of the recommendations of the Low Pay Commission, relating to the increase of National Minimum Wage rates that will come into effect on 1st April 2024.
The top band, known as the National Living Wage, currently applies to workers aged 23 and over. It has been announced that this age threshold will be reduced to 21 and over from April 2024. Different minimum wage rates will continue to apply to 18-20-year-olds, 16-17-year-olds and apprentices aged under 19 or in the first year of an apprenticeship.
National Minimum Wage rates effective from 1st April 2024 will be as follows.
| New Rate from 1st April 2024 | Current Rate | Increase | |
| National Living Wage (Applies to all workers aged 21 and over) | £11.44 | £10.42 | 9.8% |
| 18 – 20 Years Old | £8.60 | £7.49 | 14.8% |
| 16 – 17 Years Old | £6.40 | £5.28 | 21.2% |
| Apprentice (*) | £6.40 | £5.28 | 21.2% |
| Accommodation Offset (per day) | £9.99 | £9.10 | 9.8% |
(*) – The apprentice rate is for apprentices aged 16 – 18 and those aged 19 or over who are in their first year. All other apprentices are entitled to the National Minimum Wage applicable to their age.
These will be the largest ever increases in the National Minimum Wage in cash terms and the first time it has increased by more than £1. The Government said that the size of this increase is driven by the strength of pay growth across the economy, which is forecast to continue into next year.
Other statutory pay updates such as Statutory Sick Pay and Statutory Redundancy Pay are yet to be confirmed.
Do you need legal advice regarding a pay issue?
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