Important Update: National Minimum Wage Increase from April 1, 2024

Do you about the upcoming changes in the National Minimum Wage, effective April 1, 2024.

Starting from this date, individuals aged 21 and over will receive the National Living Wage, set at £11.44 per hour. This largest even increase of 9.8% ensures that employees in this age group will now earn a minimum annual salary of £23,308 based on a standard 37.5 hours per week. Employers need to be careful as many staff may fall below this annual salary rate and companies need to prepare for the increase.

In the past, the jobs that have been most affected by wage increases have been retail, hospitality, factory and driving work. However, now we are seeing that many junior administration and reception roles will also be effected. There are many vacancies across the country where pay rates are advertised as an annual salary of £21,000, these are only just about the current minimum of £20,319.

Here is a breakdown of the new rates:

– Age 21 and over (National Living Wage): £11.44 per hour, £23,308 per annum

– Age 18 to 20: £8.60 per hour

– Under 18: £6.40 per hour

– Apprentice: £6.40 per hour

As a recruitment business, we understand the impact that these changes can have on the workforce and the importance of staying informed. It is crucial for both employers and employees to be aware of these adjustments to ensure fair compensation and compliance with the updated regulations.

Here is a link for the additional information from the UK Government https://www.gov.uk/government/publications/minimum-wage-rates-for-2024

Make sure you take some time and plan, if you need any help implementing these our HR partner will be able to help.