Largest ever cash increase to the minimum wage
The Government accepted reccomendations from the Low Pay Commission and will be increasing the National Living Wage by 9.8% from £10.42 per hour to £11.44 per hour from April 1st 2024. This is the first time the living wage has risen by more than £1.
According to the Treasury this will equate to more than an extra £1,800 per year for those on full time contracts. For a full time worker on the living wage, you will see an annual salary of:
37.5 hours x £11.44 x 52 weeks = £22,308 per annum
40 hours x £11.44 x 52 weeks = £23,795 per annum
Chancellor Jeremy Hunt also announced in his Autumn Statement that they have also accepted the recommendation from the LPC to lower the age threshold for the National Living Wage, which from April 2024 will see 21+ years eligable for the £11.44 per hour rate. The threshold had previously fell from 25+ years to 23+ years in 2021.
“Our new recommendation of a National Living Wage of £11.44 attempts to steer a path through this uncertainty and achieve the government target of two-thirds of the median wage, an outcome which if accepted would position the U.K. at the forefront of comparable economies.”
Bryan Sanderson, Chair of the Low Pay Commission
The rates coming into effect from 1st April 2024 are as follows:
| NMW Rate | Increase in pence from 2023 | ||
|---|---|---|---|
| National Living Wage (21 and over) | £11.44 | £1.02 | 9.8% |
| 18-20 Year Old Rate | £8.60 | £1.11 | 14.8% |
| 16-17 Year Old Rate | £6.40 | £1.12 | 21.2% |
| Apprentice Rate | £6.40 | £1.12 | 21.2% |
| Accommodation Offset | £9.99 | £0.89 | 9.8% |
What is the difference between the National Living Wage and the National Minimum Wage?
The National Living Wage is the lowest amount workers aged 23 and over can by paid per hour by law (Soon to be 21+ years from April 2024).
The National Minimum Wage is the minimum pay per hour workers are entitled to by age under 23 years (Soon to be under 21+ years from April 2024).
The current NMW rates (April 1st 23 - March 31st 24)
| NMW Rate | Increase in pence from 2022 | ||
|---|---|---|---|
| National Living Wage (23+) | £10.42 | 0.92 | 9.7% |
| 21-22 Year Old Rate | £10.18 | 1.00 | 10.9% |
| 18-20 Year Old Rate | £7.49 | 0.66 | 9.7% |
| 16-17 Year Old Rate | £5.28 | 0.47 | 9.7% |
| Apprentice Rate | £5.28 | 0.47 | 9.7% |
| Accommodation Offset | £9.10 | 0.40 | 4.6% |
Read more Government announcements on our blog:
Request a call from us:
