The Government has recently announced updates to the National Living Wage and National Minimum Wage, to take effect from April 2024. We wanted to provide our clients and contractors with an overview of the changes that will be taking effect, so that they are aware and can plan appropriately for when the changes come in.
What are the changes to National Minimum Wage in 2024?
Over 21
The National Minimum Wage will be £11.44 from 1st April 2024, an increase from £10.42. This now applies to anyone over 21, whereas previously it only applied to anyone over 23.
In terms of salary, this means that someone in a full-time permanent role working a 40-hour week will now earn a gross annual salary of £23,795.20, up from £21,673.60.
18-20 year olds
From 1st April 2024, the National Minimum Wage for 18-20 year olds will be £8.60, up from £7.49.
In terms of salary, someone in full-time permanent employment working a 40-hour week will now earn a gross annual salary of £17,888.00 up from £15,579.20.
16-17 year olds
From 1 April 2024, the National Minimum Wage for 16-17 year olds and apprentices will be £6.40, up from £5.28.
In terms of salary, someone in full-time employment working a 40-hour week will now earn a gross annual salary of £13,312.00 up from £10,982.40.
National Insurance thresholds also went down in January 2024, from 12% to 10%.
What does this mean for employers?
Employers who fail to pay their employees at the correct rates not only face potential claims from their workforce but also risk being publicly identified in a government report. It is crucial for employers to stay informed about salary increases, especially regarding the implementation of the National Living Wage (NLW) for individuals aged 21 and above starting next April.
At Quest Pay Solutions, we are dedicated to remaining informed about industry developments and ensuring strict adherence to all legal requirements. Should you have any inquiries regarding your contractors’ hourly wages or require guidance, please feel free to reach out to our team.
