The rates for the minimum wage from April 2024 have been announced and there is one major change that employers need to note which is that the National Living Wage will now apply to those 21 and over.
Currently this applies to those 23 and over but from the 1st April 2024 anyone 21 and over will be legally entitled to £11.44 per hour.
The rates will be:
21 and over – £11.44 (increase £1.02)
18-20 – £8.60 (increase £1.11)
16-17 and apprentices – £6.40 (increase £1.12)
With the increase pending to the National Minimum Wage, it is important to check that salaried employees are being paid the correct rate.
For an employee 21 and over who works 37 hours per week the minimum salary will be £22,010.56.
How to calculate for salaried employees
The number of hours they work per week x 52 = annual hours
Annual hours x £11.44 = Minimum annual salary
Important note to remember
For the purposes of ensuring that you are paying the correct minimum wage rate you will need to check the calculation of hours and pay based on the pay period that applies (e.g. weekly pay, fortnightly, monthly).
What this means is that if someone has variable hours each month and are paid monthly, the pay at the end of the month must meet the minimum wage requirements.
It is not sufficient to say that over the course of the year they are paid the minimum wage, as for compliance purposes HMRC will look at what they are paid in the relevant pay period.
Real Living Wage
For those employers who have signed up to the voluntary Real Living Wage set by the Living Wage Foundation the rates increased in October to £12 for those outside of London and £13.15 for those working in London.