Minimum Wage Gets a Boost: What You Need to Know About the 2024 Increase

Good news for low-paid workers! The National Living Wage (NLW) – the minimum hourly rate for workers aged 21 and over – saw a significant increase in April 2024. This long-awaited rise means a welcome bump in pay for millions of people across the UK.

How Much Did the Minimum Wage Increase?

Previously, the NLW stood at £10.42 per hour. As of April 1st, 2024, it jumped to a new rate of £11.44 per hour. This represents a 9.8% increase, putting more money in the pockets of those who need it most.

Who Benefits from the Minimum Wage Increase?

The rise in the NLW primarily benefits workers aged 21 and over. This change extends the higher minimum wage rate to a wider group for the first time, ensuring fairer pay for younger adults. However, there are also adjustments for younger age groups:

  • 18-20 year olds: The minimum wage for this age group also increased in April 2024, going from £7.49 to £8.60 per hour. This represents a 14.8% rise.
  • Apprentices: Apprentice minimum wage rates also saw an increase, though the specific amounts vary depending on age and experience level.

Why Did the Minimum Wage Increase?

The government pledged to raise the NLW to two-thirds of median earnings by 2024. This increase signifies a step towards achieving that goal. The aim is to ensure a basic standard of living for low-paid workers and help narrow the income gap.

What Does This Mean for Employers?

Employers with staff affected by the minimum wage rise need to adjust their payrolls accordingly. This means ensuring all workers aged 21 and over receive at least £11.44 per hour, and those aged 18-20 receive at least £8.60 per hour, as of April 1st, 2024.

Looking Ahead: What’s Next for the Minimum Wage?

The government is currently collecting evidence to inform future minimum wage policy. Whether there are further increases or adjustments will depend on economic factors and recommendations from the Low Pay Commission.

Stay Informed:

For the latest updates on minimum wage rates, you can check reliable resources like the government website (https://www.gov.uk/national-minimum-wage-rates) or speak to us here at DonnellyBentley.

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