National Minimum Wage from April 2024

The National Minimum Wage is increasing from 1 April 2024, impacting  both employees and businesses. Here’s what you need to know:

New Rates 2024/2025

Age Category2023/2024 Rates2024/2025 Rates% Increase
23 Years and Above (National Living Wage 23/24)£10.42N/A
21 Years and Above (National Living Wage 24/25)N/A£11.449.80%
21 – 22 Years inclusive£10.18Abolished
18 to 20 Years inclusive£7.49£8.6014.80%
16 to 17 Years inclusive£5.28£6.4021.21%
Apprentices*£5.28£6.4021.21%

The National Living Wage age has been lowered from 23 to 21 year olds and above, removing the 21 to 22 years inclusive bracket.

Employees will experience an increase in both gross and take-home pay, potentially boosting consumer spending and driving economic growth.

Industries which mainly pay employees at National Minimum Wage levels such as hospitality will see the biggest impact on their rising annual wage bills

Apprentices

For all Apprentices over the age of 19 and in the second year of the apprenticeship scheme, the National Minimum Wage for their age will continue to apply.

Employment Allowance

There are no significant changes to the Employment Allowance, this is a relief claimed by businesses with more than one director and an National Insurance bill under £100K in the previous tax year.

Employment Allowance can be claimed up to £5,000 per year reducing a business’s Employers National Insurance bill.

If you have any questions on how these changes will impact you or your business, please get in touch on 01228 904904.

ICAEW

The Chartered Institute of Taxation

The Association of Taxation Technicians

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