The Government has accepted the Low Pay Commission’s recommendations for the rates of the National Living Wage (NLW) and the National Minimum Wage that will apply from April 2024 and which represent the largest ever increase in cash terms.
A key change is the lowering of the threshold for the NLW to 21 (it is currently only payable from the age of 23).
As regards the rates themselves, from 1 April 2024 there will be:
- a 9.8 per cent increase to the NLW for those aged 21 and over (from £10.42 to £11.44 per hour)
- a 14.8 per cent increase for those aged 18-20 (from £7.49 to £8.60 per hour)
- a 21.2 per cent increase for those aged 16-17 and apprentices (from £5.28 to £6.40 per hour).
The LPC has said that that the size of the increases is driven by the strength of pay growth across the economy, which is forecast to continue into next year.
Press release: https://www.gov.uk/government/news/largest-ever-cash-increase-to-the-minimum-wage
For further information, please contact:
Meriel Schindler, Partner, Withersworldwide
meriel.schindler@withersworldwide.com
