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Important Update on National Minimum Wage Increases – Effective from 1st April 2024

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As part of our commitment to keeping you informed and supported, we want to share some important updates regarding the National Minimum Wage, which will take effect on April 1, 2024.

What this means for you and your business: It’s time to prepare for the upcoming changes to ensure your business thrives while supporting your valuable team. You will need to adjust the wages of your staff members to meet the new minimum wage standards by the specified date.

Detailed overview of the new wage standards:

Before we delve into the new structure, let’s recap the rates up until 31st March 2024:

  • Adults aged 23 and over: £10.42.
  • Young people aged 21 to 22: £10.18.
  • Youths aged 18 to 20: £7.49.
  • Those under 18: £5.28.
  • Apprentices: £5.28.

Here are the adjusted rates starting from 1st April 2024:

  • For individuals aged 21 and over: £11.44.
  • For youths aged 18 to 20: £8.60.
  • For those under 18: £6.40.
  • For apprentices: £6.40.

Additionally, from 1st April 2024, workers aged 21 and over will be eligible for the National Living Wage.

Special notes on apprenticeship wages:

Apprentices under 19 or in their first year of apprenticeship will be entitled to the apprentice rate. Apprentices aged 19 or over who have completed the first year of their apprenticeship will qualify for the minimum wage appropriate to their age.

How to ensure you’re being HMRC compliant:

All employers are urged to:

Missteps such as improper wage deductions or failing to compensate for all work time can lead to unintended underpayment.

Action steps and resources for your business:

Legally, you must verify your staff is receiving at least the new minimum wage rates. If you’re already compensating your employees above these updated figures, no further action is required on your part. However, we recommend that you communicate any wage increases to your team members.

To aid in your preparation, HMRC is hosting live webinars throughout March. These offer a platform for questions and clarifications on the wage increase. Registration is available on their website here.

As always, our team is here to help you navigate these changes smoothly. Whether it’s adjusting your payroll, answering any questions you might have, or offering further guidance, feel free to reach out.

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