Are you on top of 2024 National Minimum Wage increases in your business?

Are you on top of 2024 National Minimum Wage increases in your business?
Spring always means rises in the National Minimum Wage and National Living Wage, something that’s good news for employees but not so much for employers, as this year’s increases are significant. But there’s no avoiding them, so ensuring you’re planning these additional costs into your business – and not falling short on your minimum wage obligations is crucial.

The rates that will apply from 1st April 2024 are as follows:

NMW Rate Increase (£) Increase (%)
NLW (21 and older) £11.44 £1.02 9.8%
18-20 year old £8.60 £1.11 14.8%
16-17 year old £6.40 £1.12 21.2%
Apprentice Rate £6.40 £1.12 21.2%

Note that the NLW will apply from the age of 21, rather than from 23 as it currently does.

Here’s how to ensure you’re staying on top of changes to National Minimum Wage and National Living Wage in your business:

1. Stay Informed:

Keep up to date with announcements from the UK government regarding changes to the National Minimum Wage. This information is typically released well in advance of any changes taking effect, so keep an eye on our updates both via our blog and LinkedIn page.

2. Review Current Pay Rates:

Assess your current pay rates to determine which employees will be affected by the minimum wage increase. Ensure that you’re paying all affected employees at or above the new minimum wage rate.

3. Adjust Payroll Systems:

Update your payroll systems to reflect the new minimum wage rates. This may involve making changes to your payroll software or processes to ensure that employees are paid correctly.

4. Communicate Changes to Employees:

Clearly communicate any changes to minimum wage rates to your employees. Explain how the changes will impact their pay and when they will come into effect.

5. Monitor Compliance:

Regularly review your payroll records to ensure that all employees are being paid at or above the minimum wage rate. This will help you to remain compliant with the law and avoid potential penalties for non-compliance.

6. Budget Accordingly:

Consider the financial impact of minimum wage increases on your business and adjust your budget accordingly. This may involve making changes to your pricing, staffing levels, or other aspects of your business operations.

7. Seek Professional Advice if Needed:

If you’re unsure about how to implement minimum wage increases in your business, consider seeking advice from a legal or HR professional who can provide guidance based on your specific circumstances. Our team of friendly, expert HR consultants provide HR without the blah blah blah, so get in touch enquiries@thehrconsultants.co.uk and see how we can help.
By following these steps, you can ensure that your business remains compliant with National Minimum Wage regulations and continues to pay employees fairly and accurately.