KNOWLEDGE

New National Living and Minimum Wage levels confirmed for 2024

PUBLISHED:
29 November 2023
Audience:
Business
category:
Blog

National Living and Minimum Wage levels are set to increase for 2024, find out what this means for employers and employees. 

 

 

The rates of National Living Wage ("NLW") and National Minimum Wage ("NMW") from 1 April 2024 have been confirmed. From that date:-

  • NLW will increase from £10.42 to £11.44 per hour (for those aged 21 and over from 1 April)
  • NMW for those aged 18 to 20 will increase from £7.49 to £8.60 per hour
  • NMW for those aged 16 to 17 and apprentices aged under 19 or in their first year of an apprenticeship will increase from £5.28 to £6.40 per hour

Age thresholds

The age threshold for the NLW will also be lowered to apply to workers aged 21 and over (rather than 23 and over). In cash terms, the increase to the minimum wage is the largest ever made.  The increase to the NMW for 18 to 20 year olds is £1.11, and for 16 to 17 year olds and apprentices it is £1.12. The increase to the NLW is also just over a pound at £1.02. 

UK Government targets

The UK Government set a target to have the NLW equal to two-thirds of the median hourly rate for those aged 21 and over by April 2024 and the Low Pay Commission ("LPC") believes that the new rate will meet that target. The LPC is currently reviewing the broader framework to inform the UK Government's decisions after 2024 but have stated that their current thinking is that there should be a move towards an adult rate that begins from the age of 18. 

Author: Nikita Sandhu

Disclaimer

The content of this webpage is for information only and is not intended to be construed as legal advice and should not be treated as a substitute for specific advice. Morton Fraser LLP accepts no responsibility for the content of any third party website to which this webpage refers.  Morton Fraser LLP is authorised and regulated by the Financial Conduct Authority.