National Living Wage Changes in 2024

October 18, 2023

Just to pass on news that the National Living Wages (the rate set for employees aged over 23 years old) is set to rise to a minimum of £11/hour in 2024. I understand that the rate for over 21 year olds is also due to be reviewed with regard to also being raised.

If you feel that this increase is going to impact your financial position, then you are best taking the necessary steps at this stage for staff, so you comply with the terms of their employment contract as well as accommodate any changes in workload that will have to be made.

Yes the thought of making someone redundant because we cannot afford the increase that is coming in the new year seems such an awful thing to have to do, especially when the individual concerned would prefer to be paid at the lower wage rather than lose their job…

Current National Living/Minimum rates can be found via the following site and this is the only one you should use in order to ensure that you comply:
https://www.gov.uk/national-minimum-wage-rates

There are different rules which cover the calculation of National Minimum Wage and for example can also apply to Directors. If your staff need to wear high visibility jackets or are required to wear shirts with your logo, you will need to either provide them with the clothing or re-imburse them for purchasing it. It’s really important to show that you have considered all of the  rules.

HMRC is able to go back 6 years to account for any underpayments made to your staff including those who may have left. If  you are in any doubt or have any questions about compliance, we would suggest contacting your local tax office to clarify.

If you ask for a reference number for your call and/or get the name of the person you spoke with, you can follow up with a letter to outline what you have been told. In this way, you have evidence should there be any investigation in the future.

Have you got staff and had any issues with national minimum wage/living wage?

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