What’s the new National Living Wage and National Minimum Wage?

The National Living Wage (NLW) will increase by 9.8% to £11.44 per hour from April 2024. This will also apply to 21 and 22-year-olds for the first time.

This is the largest ever increase to the statutory hourly minimum. It’s expected to result in a boost to annual earnings worth over £1,000 for those working under full-time contracts.

The changes in detail

The NLW is currently £10.42 per hour and only applies to workers aged 23 and above. Workers under the age of 23 and apprentices are entitled to the National Minimum Wage (NMW) instead.

From 1st April 2024, the age above which workers qualify to receive the NLW will be lowered from 23 years to 21 years. 

The NLW will also be put up by £1.02 from this date, to £11.44 per hour - an increase of 9.8%. The NMW is set to increase by more than £1 per hour.

The NLW and NMW rates, effective from 1st April 2024, are shown below:

The Government has estimated that there are over 2 million taxpayers currently eligible for the NLW who will benefit from this increase.

If you have questions about how the NLW and NMW will affect your business, please get in touch with our experts.