
National Living Wage
From 1st April 2024, there have been updates to the National Living Wage and National Minimum Wage to ensure fair compensation for workers across England. Are you aware of the new levels? From 1st April 2024, there have been updates to the National Living Wage and National Minimum Wage to ensure fair compensation for workers across England. The new rates apply to everyone and are different based on your age, including whether you are in an apprenticeship role. It doesn't matter if you're in a full time, part time or temporary role, your employer should pay you the correct hourly rate for your age.Below, we outline what the new salary levels should be:
National Living Wage – previously individuals had to be 23 years old to qualify but now, employees over 21 are entitled to this wage. The rate has increased from £10.42 per hour to £11.44 per hour. Over a year, this means that a full time worker will receive a pay rise of 2.4%, or £1800 per year. Moreover, a 21 year old transitioning from the lower minimum wage rate to the main rate will enjoy a sizeable pay rise of £2,300 per year.
National Minimum Wage - this applies to younger employees between the ages of 16 and 20. If you are 16 or 17 years old, the rate has increased from £5.28 per hour to £6.40 per hour. If you are 18,19 or 20, you will see an increase from £7.49 per hour to £8.610 per hour.
The increased wages undoubtedly mark a positive step forward for apprentices, though critics still point out that the apprentice wage of £6.40 is only a little over half of the national living wage. For apprentices aged 16 to 18, and those aged 19 or over in their first year of apprenticeship, employers must pay at least the apprentice minimum wage. After their first year, apprentices aged over 19 should receive at least the national minimum wage or the national living wage, depending on their age.
So, for companies benchmarking salaries, £25,000 per annum may now not seem as competitive as it used to be. If you aren’t sure if you are being fairly compensated for your role, contact us today on 01722 448 448 for an informal chat.