From 1 April 2024 the National Minimum Wage (NMW) rates increase by around 10% for the second year running.
The NMW increase of £1.02 represents a 9.8% rise, equivalent to an annual increase of around £1,990 for a full-time worker.
In summary, effective 1 April 2024, the following minimum wage rates will apply:
Plan ahead
Ensure your payroll procedures are up to date and consider notifying staff ahead of time in writing (even via a note on their payslip). This transparency is likely to be well received and could help build positive employee relations. It also offers an opportunity to explain that any overtime worked during a pay reference period before introducing the new rates (even if payable after these have been introduced) will be paid at the previous rate. For further details and more rates visit gov.uk
*21-22 Year olds: There's no longer a difference between the National Living Wage for those over 23 years old and the National Minimum Wage for those over 21. All employees over 21 years old will now receive the higher NMW rate. Meaning that this year's 21-2 year olds are in-line for 12.3% increase.
*Apprentices: are entitled to the apprentice rate if they’re either:
aged under 19
aged 19 or over and in the first year of their apprenticeship
Auto enrolment pension rates and thresholds
The Workplace Pension Auto Enrolment earnings trigger of £10,000 per year remains the same as do the minimum contribution rates, with no more planned increases:
Employer minimum pension contribution 3% and staff contribution 5%
The lower qualifying earnings band remains at £6,240 # and the upper limit at £50,270.
Note #: Over £6,240 is the threshold at which non-eligible jobholders (those not auto-enrolled) can ask their employers to opt-in. It's also the threshold over which 3% and 5% contributions are paid.
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