The National Minimum Wage for an individual aged 21 years and over will be £11.44 per hour. See all hourly minimum rates from April 2024 below.
It is important to ensure that employees are paid the minimum wage. The hourly rate depends on the age of the employee.
Below we go through the new rates, which will commence 1st April 2024. Plus, we will go through some tips on how to ensure compliance.
From April 2024 the new rate will increase to £11.44 per hour. The current rate is £10.42 (2023/24 tax year)
From April 2024 the qualifying age will be extended to include those aged 21 years old and over. Currently it is only available to those aged 23 and over.
From April 2024 the hourly rates will be as follows:
21 to 22 year olds will qualify for the National Living Wage (see above). The rate is currently £10.18 per hour (2023/24 tax year)
18 to 20 year olds will receive a minimum of £8.60 per hour. The rate is currently £7.49 per hour (2023/24 tax year)
Under 18s will receive a minimum of £6.40 per hour. The rate is currently £5.28 per hour (2023/24 tax year)
From April 2024 the apprenticeship rate will be £6.40 per hour. The rate is currently £5.28 per hour (2023/24 tax year).
The apprenticeship rate is applicable for those on an apprenticeship aged under 19 years of age or if they are in their first year of the apprenticeship.
Below is a summary of the new rates that will be applicable from April 2024:
£11.44 for 21 years old and over
£8.60 for 18-20 years old
£6.40 for under 18s
£6.40 apprenticeship rate
The new rates for the National Living Wage and National Minimum Wage will apply from 1st April 2024.
No. Not everyone is entitled to receive the National Minimum Wage.
The main individuals who are exempt are the following:
Self-employed individuals,
Company Directors,
Volunteers,
Students on work placements
Workers younger than school leaving age (i.e Usually 16)
TAX TIP: We strongly recommend that if you are a Company Director that you pay yourself the Optimum Directors Salary.
You may have heard of the National Living Wage and wonder how this differs to the National Minimum Wage.
The terms are often interchangeable, however the correct definitions are as follows:
The National Living Wage is only applicable to those aged 23 and over. From April 2024 it will cover 21 and 22 year olds. It relates to the rate of £11.44 per hour from April 2024.
The National Minimum Wage is the minimum amount payable to all of the other workers. As a result, the rates for those aged 22 (soon to be 20) and under are all National Minimum Wage rates.
It is against the law to pay workers less than the UK National Living Wage or National Minimum Wage. Workers not receiving the minimum hourly rate should speak to their employer immediately.
Should the issue not be resolved, typically the worker would either go to an employment tribunal or could even ask HMRC to investigate.
If found guilty, the penalty can be anything up to £20,000 per worker. The company Director can be publicly named and banned from being a Director for up to 15 years.
National Minimum Wage – Steps to take
The hourly rate increases are clearly defined by age boundaries. As a result, it is important to ensure that the correct dates of birth for all workers are known.
Any employee aged 17, 20 and 22 years of age should have their birthdays noted as they will change to a different pay group. For example a 20 year old will currently be entitled to £7.49 per hour. However, on their 21st birthday, this will increase to £10.18 per hour. It will increase further from April 2024 when they qualify for the higher National Living Wage.
Most businesses now use commercial software to complete their payroll. Ensure that all date of births are entered as some software will warn you if there is an issue. We recommend Brightpay and this software will warn you for hourly paid employees.
Employees who are paid either a monthly/weekly salary or day rates are entitled to receive the National Minimum Wage. Additional checks must be made to ensure that the contracted hours set out in the employees contract plus any additional hours worked meets the required minimum rates.
For further information see the HMRC website
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