The government has announced substantial increases to the national living wage (NLW) and national minimum wage (NMW) rates from 1 April 2024, and a key change for workers aged 21 and 22. What are the new rates going to be and what is the key change?
Accepting the recommendations of the Low Pay Commission in full, the government has confirmed that it will be increasing the NLW and NMW rates from 1 April 2024 as follows:
- the NLW rate will rise by 9.8% from £10.42 to £11.44 per hour - this rate currently applies to workers aged 23 and over but it will be extended to also apply to 21 and 22 year olds from 1 April 2024
- the NMW rate for workers aged 18 to 20 will rise by 14.8% from £7.49 to £8.60 per hour
- the NMW rate for workers aged 16 and 17 will rise by 21.2% from £5.28 to £6.40 per hour
- the NMW rate for apprentices aged under 19, or those aged 19 and over but in the first year of their apprenticeship, will rise by 21.2% from £5.28 to £6.40 per hour
- the daily offset for the provision of living accommodation to a worker will rise by 9.8% from £9.10 to £9.99 per day.
The NLW will increase by 9.8% to £11.44 per hour and it will also then cover workers aged 21 and 22. The various NMW rates will see increases ranging from 14.8% to a massive 21.2%.
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