As is normally the case in November of each year, the Low Pay Commission announced the new National Living Wage (NLW) and National Minimum Wage (NMW) rates after the government accepted its recommendations for 1st April 2024.
One new change is that the age threshold for the NLW is being lowered to 21, from the current 23 years of age. The NLW is increasing by £1.02, from £10.42 to £11.44, a 9.8% increase. The other rates for the NMW are as follows:
- Those aged 18 – 20 will see a rise of £1.11, from £7.49 to £8.60, a 14.8% increase; and
- Those aged 16 – 17 and apprentices will see a rise of £1.12, from £5.28 to £6.40, a 21.2% increase.
These increases are the largest we have seen, driven by the high interest rates in the last year and the resulting in the strong pay growth across the economy. The gap between the various rates is also closing, as can be seen by the bigger percentage increases in the younger age bands.
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Key Takeaways:
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Author: Paul Burton, Employment Law Solicitor, View HR
Email: paul@viewhr.co.uk
Paul has been an employment solicitor for nearly 20 years and is known for his in-depth knowledge and expertise in the areas of employment law and human resources. He was a partner at a sizeable South Coast law firm before coming to ViewHR and has often been asked to be a guest speaker at HR events, including lectures for CIPD. He regularly provides training to clients in relation to their human resources, for example, performance management and tackling sickness absence.
Paul is a member of the Employment Lawyers Association and has been recognised for many years in the Legal 500, a leading independent legal directory. He specialises in both contentious and non-contentious employment law matters, including unfair dismissal, whistleblowing, disability discrimination, TUPE, settlement agreements, contracts and policies.
