Navigating the Upcoming National Minimum Wage Increase: A Guide for Business Owners

Share This Post

As April approaches, it’s time to prepare for the upcoming changes in the national minimum wage. Starting from 1st April, the national minimum wage is set to rise, so we guide you through the rates and the dates you need to ensure you’ve applied this from.

Understanding the New Minimum Wage Rates

Not paying National Minimum Wage to employees can result in a fine and reimbursing employees, so it’s important to get this right, If your payroll is managed through Vibrant or Payroll Sorted, rest assured that checks will be conducted to ensure compliance with the new rates.

The new rates from 1 April 2024 are as follows:

21 and over18 to 20Under 18Apprentice
April 2024£11.44£8.60 £6.40 £6.40 

Key Implementation Dates

It’s crucial to understand that the wage increase should be applied from the first full pay reference period on or after 1st April. Here’s how it breaks down for various pay frequencies:

  • Monthly Payroll
    • For a pay period from 1st April to 30th April with pay on 30th April, the increase applies from 1st April.
    • For a period from 16th March to 15th April with pay on 15th April, the increase applies from 16th April.
  • Weekly Payroll
    • For a week from 1st April to 5th April with pay on 12th April, the increase starts on 1st April.
    • For a week from 27th March to 2nd April with pay on 5th April, the increase starts on 3rd April.
  • Four-Weekly Payroll
    • For a period from 25th March to 22nd April with pay on 26th April, the increase starts on 23rd April.

Remember, as an employer, you can opt to increase wages from 1st April, regardless of these rules. Either way, this change must be communicated to your employees.

FAQs for Employers

Q: Who is responsible for increasing the national minimum wages? A: As an employer, you are responsible for ensuring your employees are paid the revised national minimum wages. This applies to annual government increases from 1st April and age-related adjustments, like when an employee turns 21.

Q: When do I need to update my employees’ wages? A: The new minimum wages should be paid from the first day of the full pay reference period following 1st April. However, you can choose to implement the increase from 1st April.

Q: How should I communicate the wage increase to employees? A: Effective communication is key. Inform your employees about the wage increase and its effective date through an email or a letter. This ensures clarity and reduces queries.

The increase in the national minimum wage is a significant step for both employers and employees. By understanding the new rates and their implementation, you can ensure your business remains compliant. If you have further questions, don’t hesitate to contact us.

Share This Post