National Living Wage to rise by more than a pound an hour

The National Living Wage is to rise by £1.02 an hour from next April, increasing the average worker’s pay by £1,800 a year.

Joanne Stronach Director and Head of Employment & HR provides an update.

The boost from £10.42 to £11.44 an hour is the biggest increase in the National Living Wage in more than a decade.

Eligibility for the new rate will also be extended by reducing the age threshold to 21-year-olds for the first time.  A 21-year-old will get a 12.4% increase, from £10.18 this year to £11.44 next year, worth almost £2,300 a year for a full-time worker.

National Minimum wage rates for younger workers will also increase. 18-20-year-olds will also get a wage boost to £8.60 per hour – a £1.11 increase.

The Department for Business and Trade estimates that 2.7 million workers will directly benefit from the 2024 National Living Wage increase.

The minimum hourly wage for an apprentice is also being increased, with an 18-year-old apprentice in an industry like construction seeing their minimum hourly pay increase by over 20%, going from £5.28 to £6.40 an hour. 

The new rates will come into effect next April.

If you would like advice about employment law please contact Joanne on 01228 516666 or click here to send her an email.