Every April, there is an increase to both the National Minimum Wage and the National Living Wage. In April 2024, there will be a significant change to the National Living Wage, with the age of the entitled worker decreasing. Read below to find out about the changes and how they affect you and/or your staff.
Please be aware that this information is true as of March 2024 according to the Gov UK website.
From April 2024, the National Minimum Wage in the United Kingdom will increase whilst the age of those entitled to the National Living Wage lowers.
This change will be of interest to both our clients and candidates as it will affect you all. Continue reading to understand the changes and how they impact you.
Guide to National Minimum Wage 2024
The National Living Wage is the biggest change to the National Minimum Wage in 2024. Typically, employees aged 23 are entitled to the National Living Wage with those under 23 being entitled to the minimum wage.
From 1 April 2024, employees from the age of 21 will be entitled to the National Living Wage.
The changes to the minimum last year were significant and again, the changes in 2024 are a substantial increase. We have illustrated the changes to the National Minimum Wage 2024 below.
We understand that you may have some questions about this, so we have answered some FAQ’s below.
Q: What is the National Minimum Wage and National Living Wage in the UK?
A: We have two distinct wage rates in the UK that protect workers and ensure they are paid correctly. The distinct difference is that the National Living Wage is given to those over a certain age and is higher than the National Minimum Wage.
Q: What are the changes to the National Minimum Wage and National Living Wage?
A: The most significant change to the National Minimum Wage and National Living Wage in 2024 is the age of eligibility for the National Living Wage lowering from age 23 to 21.
Q: How do changes to the national minimum wage and national living wage affect workers?
A: Workers over 21 are now entitled to the National Living Wage, so if your employees are on the minimum wage, their minimum rate increases to the national living wage.
As either an employer/manager or an employee, it is important to be aware of and understand these changes. Especially understanding how they affect you.
Employers, we have a question for you.
Will this change affect many of your staff? Are many of your staff on the National Minimum Wage?
As a recruitment partner, Square Peg Associates works with businesses to improve their recruitment strategy. A significant factor within this strategy revolves around salary.
Companies offering a better rate for work (including benefits!) attract a wider range of candidates and improve retention rates. A better offering initially attracts more people but also helps to retain the best employees and build a more productive and motivated workforce who feel valued and rewarded.
We understand not all business owners will be able to offer higher salaries and may have concerns about the impact of these changes. For example, smaller businesses and those operating in low-profit sectors may struggle to absorb the additional costs of paying higher wages.
We want to reassure you that we are here to support you through these changes. Our team of recruitment experts are on hand to offer advice and guidance on how to navigate the new minimum wage rates and ensure that your business or career remains successful.
For more information and support, contact us online to speak to a member of our team.
