The National Living Wage (NLW) is currently the statutory minimum wage for workers aged 23 and over. Following LPC recommendations in 2019, the age threshold for the NLW was lowered from 25 to 23 in April 2021 and will now be lowered to 21 next April. Different minimum wage rates will continue to apply to 18–20-year-olds, 16–17-year-olds and apprentices aged under 19 or in the first year of an apprenticeship.
The annual increases to the minimum wage and national living wage with effect from 1 April 2024 are as follows:
- 21 and over – £11.44 (increase of £1.02)
- 18-20 – £8.60 (increase of £1.11)
- 16-17 and apprentices – £6.40 (increase of £1.12)
- The accommodation offset will £9.99 per day (increase of 89p).
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.
This provides summary information and comment on the subject areas covered. Where employment tribunal and appellate court cases are reported, the information does not set out all of the facts, the legal arguments presented and the judgments made in every aspect of the case. Employment law is subject to constant change either by statute or by interpretation by the courts. While every care has been taken in compiling this information, we cannot be held responsible for any errors or omissions. Specialist legal advice must be taken on any legal issues that may arise before embarking upon any formal course of action.