National Minimum Wage Rates

National Minimum Wage Rates April 2024

The Government have confirmed that they have accepted the Low Pay Commission’s recommendations on national minimum wage rates to apply from April 2024. This is the largest ever increase to the national minimum wage rates in cash terms. The National Living Wage will apply to all workers aged 21 and over for the first time (previously applying only to those aged 23 and over.

The National Minimum Wage Rates will increase as follows:

	Age Range	April 2024 Rate	April 2023 Rate	Rate of Increase
	23 and over	£11.44	£10.42	£1.02 (9.8%)
	21 – 22	£11.44	£10.18	£1.26 (12.4%)
	18 – 20	£8.60	£7.49	£1.11 (14.8%)
	16 – 17	£6.40	£5.28	£1.12 (21.2%)
	Apprentices	£6.40	£5.28	£1.12 (21.2%)

Accommodation Offset

The accommodation offset will £9.99 per day (increase of 89p).

Domestic Workers Who Live With Their Employer

From 1 April 2024, employees who carry out domestic work while living with their employer will become entitled to the minimum wage. Previously, live-in domestic workers were exempt if they were not members of the family but were ‘treated as such, in particular as regards …. the provision of living accommodation and meals and the sharing of tasks and leisure activities’. This exemption will now be removed.

Comments

The extension of the National Living Wage to 21 and 22 year olds means that the Government has achieved its target of raising the National Living Wage to two-thirds of median earnings by 2024.

The 16 to 17 rate applies to workers who have not reached their 18^th birthday but are above compulsory school age and are not apprentices. The apprentice rate applies to apprentices who are under 19 or are over 19 and in the first year of their apprenticeship.

While the increase will be welcome news to employees it is likely to be cause for concern for many employers who are facing soaring costs across the business.

If you are assessing costs and think you might need to make some changes, such as reducing your headcount or reducing the number of hours employees work, before the April increase takes effect, please get in touch now so I can work with you to put a plan in place that you can set in motion in time for staff to leave on or before 31 March 2024.

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