Minimum wage changes April 2024 – are you ready?

From 1st April 2024 the national living wage rate has increased from £10.42 to £11.44 per hour. However, this is not the only change to have taken place.

The highest minimum wage rate, known as the national living wage, is now applicable to those aged 21 or over, instead of 23 and above. So, make sure that you have factored this into calculations and software.

This increase of more than £1 per hour is welcome news to workers, but it does need to be paid for! An automatic increase in charges to a hirer may be built into good recruitment terms of your own, but if working on hirer or RPO-drafted contracts, renegotiation may be necessary.  

The minimum wage does not just apply to agency workers, it also applies to your own employees. It is worth checking that the salaries of any lower earners are still keeping pace. For example a 40-hour week would require a minimum salary of just short of £24,000 per year to meet the minimum wage requirement.

For rapid advice on this or any other employment or recruitment related topic please call Lawspeed on 01273236236.

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