Here we have our annual update on the changes to statutory pay rates taking effect from April 2024.
The top band, known as the National Living Wage, currently applies to workers aged 23 and over. 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
Statutory Family-Related Pay – the weekly rate of statutory maternity, paternity, adoption and shared parental pay will increase on 6th April 2024 to £184.03 (up from £172.48).
Statutory Sick Pay – the weekly rate of statutory sick pay will increase on 6th April 2024 to £116.75 (up from £109.40).
Statutory Redundancy Pay – the weekly rate of pay for the purpose of redundancy pay calculations will from 6th April 2024 be capped at £700, increasing from £643.
Tribunal Awards – the maximum possible statutory award for redundancy will increase to £21,000 (up from £19,290). The maximum compensatory award for ordinary unfair dismissal will increase to the lesser of 1 year’s pay or £115,115 (up from £105,707). These changes take effect on 6th April 2024.
Please update your payroll systems to take account of the new rates and avoid potential penalties or public naming and shaming by HMRC!
Do you need legal advice on a pay issue?
For any questions on pay or statutory rates our team of employment law solicitors is here to help. For more information or to get advice, contact us today to book your free initial consultation with one of our friendly experts.
Tel: 01245 893400
Email: info@backhouse-solicitors.co.uk
Visit: 17 Duke Street, Chelmsford, CM1 1JU
Or send us a message through the Contact Us page on this website.
