Changes to National and Minimum Wage from 1st April 2024

word art with Minmum wage text

Get ready! As we approach April 1st, 2024, all employers need to be on their toes regarding the upcoming changes in the National Living and Minimum Wage rates. The National Living Wage, previously exclusive to workers aged 23 and over, will now extend its reach to include those aged 21 and over. It’s a significant shift and staying informed is crucial to ensure compliance and fairness in the workplace.

Ensuring workers are paid correctly according to these new rates is paramount for every business. By taking proactive steps to meet these legal responsibilities, employers can steer clear of legal entanglements and ensure their workforce is treated fairly.

Let’s break down the changes and what they mean for businesses and workers alike.

New Rates Taking Effect from April 2024:

  • National Living Wage (for workers aged 21 and over): £11.44 per hour
  • Ages 18 to 20: £8.60 per hour
  • Under 18: £6.40 per hour
  • Apprentices: £6.40 per hour

These rates signify a commitment to fair wages and reflect the evolving landscape of employment standards. Employers need to familiarise themselves with these figures and adjust their payroll systems accordingly.

Understanding Apprentice Rates:

Apprentices play a crucial role in many industries, and it’s vital to ensure they are fairly compensated for their work. Apprentices aged under 19, or those aged 19 or over in the first year of their apprenticeship, are entitled to the apprentice rate.

For example, from April 1st 2024, an apprentice aged 21 in the initial year of their apprenticeship is entitled to a minimum hourly rate of £6.40. However, once an apprentice reaches the age of 19 and completes the first year of their apprenticeship, they become eligible for the minimum wage rate corresponding to their age bracket.

If you are a business owner doing your own payroll using Sage50 Payroll or Sage 50 Accounts and would benefit from some support, download one of our free guides.

Or why not join one of our Facebook support groups?

12.03.2024

“Any advice relating to accounts or tax should be sought from your tax accountant. Sage Accounts Solutions Limited will not be held responsible for any loss or damage caused as a result of the information contained herein.”

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