The National Minimum Wage and National Living Wage will increase in the UK from 1st April 2024. Be prepared and organise your accounts and payroll now, to ensure you are not caught out at the last minute.
Difference Between National Living and National Minimum Wage
The National Minimum Wage is the minimum amount legally payable per hour of work. The National Living Wage is higher than this taking into account other factors which represent the real cost of living – in previous years it was for workers over the age of 25 years old, then lowered to workers over 23 years old, however from 1st April 2024 this will reduce to those aged 21 years and over. Both the National Minimum Wage and National Living Wage are mandatory.
Regardless of how small an employer or business is, they must pay the correct wage. The increase in pay this April will benefit an estimated 2.7 million workers.
National Living Wage Rates 2024
| Previous National Living Wage | National Living Wage from 1st April 2024 | |
| Aged 21 and over | £10.42 | £11.44 |
National Minimum Wage Rates 2024
| Previous National Minimum Wage | New National Minimum Wage from 1st April 2024 | |
| Aged 18-20 | £7.49 | £8.60 |
| Aged 16-17 | £5.28 | £6.40 |
| Apprentices (aged under 19, or aged over 19 and in their first year of apprenticeship) | £5.28 | £6.40 |
Real Living Wage & London Living Wage 2024
The Real Living Wage and the London Living Wage are voluntary for businesses to pay, with rates based on the cost of living. The London Living Wage reflects the high cost of living in the capital city, allowing workers to afford the essentials for themselves and their families.
| Previous Living Wage | New Living Wage from 1st April 2024 | |
| Real Living Wage | £10 | £12 |
| London Living Wage | £11.95 | £13.15 |
What This Means For Your Business
The reason for the increase in wage is to take into consideration the growth in pay across the economy. If you do not pay employees the appropriate rates, you could find yourself in a government report and could risk claims from staff. If you need help with your accounts or PAYE, contact specialists James & Uzzell now.