The British government recently announced an increase of 9.8% from the current rate of the national living wage for workers age 21 and above (previously age 23), as well as the national minimum wage for workers age 20 and below (at least at school age). This substantial increase is intended to support the lowest earners in the United Kingdom and will be effective on 1 April 2024.
Key details
From 1 April 2024, workers from age 21 to age 23 will see their income increase as they will be benefiting from the higher national living wage rates instead of the national minimum wage rates.
Living and minimum wage rates will increase as follows:
| Age | Before 1 April 2024 | From 1 April 2024 |
| 21 and above | GBP 10.42 | GBP 11.44 |
| 18 to 20 | GBP 7.49 | GBP 8.60 |
| Under age 18 | GBP 5.28 | GBP 6.40 |
In addition, apprentice minimum hourly wage will increase from GBP 5.28 to GBP 6.40.
Next steps
Employers should audit their pay rates to ensure compliance by the timeline. The increased national living and minimum wage rates are likely to affect smaller companies more than large companies where pay rates are usually above the minimum wage.
Employers should review their salary sacrifice arrangements to ensure that their employees’ cash earnings do not fall below the national living and minimum wage rates.