National Living and Minimum Wage
National Living and Minimum Wage increases from 1 April 2024
Last week the Government announced that it was accepting the Low Pay Commission’s recommendations on minimum wage rates to apply from April 2021. Businesses and workers have both faced their own challenges in recent years, created by the uncertainty and increase in the cost of living. Now, The Department for Business and Trade estimates 2.7 million workers will directly benefit from the biggest cash increase to minimum wage.
The new rates are as follows:
- National Living Wage (21 and over) – £11.44
- 18–20-Year-Old Rate – £ 8.60
- 16–17-Year-Old Rate – £ 6.40
- Apprentice Rate – £ 6.40
The Accommodation Offset will also increase to £9.99 per day. This is an allowable deduction from wages for accommodation, applicable for each day of the week
Employers must be aware that if they fail to pay the minimum wage, they can be subject to fines by HMRC. We have seen in the news that companies as large as WH Smith and M&S were among various companies who failed to pay the minimum wage. Whether intentional or not, this has attracted enormous negative publicity and acts a stark reminder to companies this is a non-negotiable requirement. Moreover, failure to do so means that workers and employees seek redress through the Employment Tribunals.
If you are unsure if you are being paid minimum wage, the Government’s National Minimum Wage and Living Wage calculator for workers can be found here: https://www.gov.uk/am-i-getting-minimum-wage
Annalie King, Head of our Employment Team or Rosie Brighty Employment Paralegal at Kerseys Solicitors in Ipswich 01473 213311 or Kerseys Solicitors in Colchester 01206 584584 or email [email protected].
Kerseys Solicitors are just a click away visit our website and click “Call Me Back” and a member of our employment law team will be happy to contact you at a time that is convenient to you.