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5th March 2024

Chamber news: National Minimum Wage update

We have been made aware via HMRC that all employers need to be aware that National Living Wage and National Minimum Wage rates are increasing on 1 April 2024.

The key changes to be aware of include:

The rates

From 1 April 2024, workers aged 21 and over will be entitled to the National Living Wage.

21 and over 18-20 Under 18 Apprentice
£11.44 £8.60 £6.40 £6.40

 

The current and previous rates of NMW can be viewed on GOV.UK.

The National Living Wage (which is the highest rate of National Minimum Wage) is now for all workers aged 21 and over. This was previously 23 and over.

The rate increases must be applied by employers at the start of the first pay reference period on or after this date.

HMRC are hosting a number of webinars where you can learn how to apply the new rates correctly: register here.

All employers should ensure that their workers are paid correctly, according to the new rates. Businesses can take these simple steps to meet their legal responsibilities and avoid falling foul of the law:

Remember, even if you are paying your workers an hourly wage at or above the National Living or National Minimum Wage, you could still be underpaying them.

Paying the NMW can be more complex than just paying your workers the correct rate. Some common causes of underpayment include:

  • Deductions and payments for items or expenses that are connected with the job such as uniform or tools.
  • Unpaid Working Time – for example team handovers between shifts or time spent passing through security checks on entry and exit.
  • Incorrect use of the apprenticeship rates – for example, paying the minimum wage apprentice rate when the worker isn’t a genuine apprentice or paying the minimum wage apprentice rate before a worker starts their apprenticeship or after it ends.

These are just a few of the risks. You can find a useful checklist for employers on GOV.UK.

To help you to get things right, the NMW team have a collection of recorded webinars on GOV.UK covering a range of topics including ‘Getting ready for the NMW rate increase’.

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