New law: Living Wage and National Minimum Wage rates confirmed for April 2024

The new living wage and national minimum wage rates for the various categories of worker – the largest ever rises in cash terms - are as follows:

• The living wage rate for workers aged 21 or over increases to £11.44 per hour (from £10.42).
• The rate for workers aged 18 to 20 increases to £8.60 per hour (from £7.49).
• The rate for workers who are under 18 but above the compulsory school age (and not apprentices) increases to £6.40 per hour (from £5.28).
• The apprentice rate for workers aged under 19 or in the first year of an apprenticeship also increases to £6.40 per hour (from £5.28).
• The accommodation offset (the maximum daily amount an employer can take into account when calculating whether NMW has been paid, where accommodation is provided to a worker) increases to £9.99 per day (from £9.10).

Note that there is no longer a separate national minimum wage rate for workers aged 21 to 22 as all workers aged 21 or over now receive the full living wage rate.

Operative date

• 1 April 2024

Recommendation

• Employers should budget and prepare for the new rates, from 1 April 2024.