The Government has now announced the minimum wage rates which will apply from 1 April 2024, following the recommendations of the Low Pay Commission. The National Living Wage will increase from £10.42 to £11.44, and for the first time will apply to 21 and 22 year olds (instead of only those aged 23 and above). This is an increase of £1.02 or 9.8%, which is the biggest ever cash increase in the National Living Wage and will be worth over £1,800 a year for a full-time worker.
The new rates are set out below:
| Rate from 1 April 2024 | Current Rate | Increase | |
| National Living Wage | £11.44 for ages 21+ | £10.42 for ages 23+ | £1.02 / 9.8% |
| 21-22 Year Old Rate | £11.44 (as above) | £10.18 | £1.26 / 12.4% |
| 18-20 Year Old Rate | £8.60 | £7.49 | £1.11 / 14.8% |
| Apprentice Rate | £6.40 | £5.28 | £1.12 / 21.2% |
| Accommodation Offset | £9.99 per day | £9.10 per day | £0.89 / 9.8% |
The extension of the National Living Wage to 21 and 22 year olds means that the Government has achieved its target of raising the National Living Wage to two-thirds of median earnings by 2024.
Lilika Peutherer comments:
This record increase to the National Living Wage will benefit an estimated 2.7 million workers through the cost of living crisis. Employers should make sure they are aware of the new minimum wage rates, and implement them from 1 April 2024.
If you have any queries or need assistance with implementing salary amendments, please contact a member of the team here.
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