Skip to content

Call for immediate help from one of our team 01622 47 41 49

Call for immediate help from one of our team 01622 47 41 49

Call for immediate help from one of our team 01622 47 41 49

Call for immediate help from one of our team 01622 47 41 49

Employment Contracts & Recruitment
Holiday & Working Time
Employment & HR

Largest ever national minimum wage increases coming in 2024

Dan Smith
22 November 2023 3 minutes

Yesterday the government announced it has accepted the Low Pay Commission’s recommendations on minimum wage rates to apply from 1 April 2024.

This is the largest ever increase to the minimum wage in cash terms and businesses will need to prepare early for the increased employment costs.

For the first time, the National Living Wage will apply to all workers aged 21 and over, previously applying only to those aged 23 and over.

national minimum wage calulation

What’s the new National Minimum Wage from 1 April 2024?

The annual increases to the minimum wage and national living wage with effect from 1 April 2024 are as follows:

  • 21 and over – £11.44 (increase of £1.02)
  • 18-20 – £8.60 (increase of £1.11)
  • 16-17 and apprentices – £6.40 (increase of £1.12)
  • The accommodation offset will £9.99 per day (increase of 89p).


Our thoughts on the increases

With the ongoing cost of living crisis, the increases to National Minimum Wage is a positive for millions of workers across the UK. However, with businesses struggling for cash and with a recent report suggesting that the number of companies going bust this year is on track to be the highest since the financial crisis in 2009, managing the increased employment costs is going to be a challenge for many businesses, particularly those in the hospitality and care sector.

Our advice to business owners is to prepare early for the increases, calculate your staffing costs using the new minimums and consider your profitability. Do you need to increase your prices or look at cutting costs elsewhere? By preparing early, the increases should hopefully not come as a shock or cause a knee-jerk reaction.

How do I comply with National Minimum Wage?

It’s essential to understand how the National Minimum Wage is calculated to avoid unintentional violations.

As an employer, you must be aware of the NMW rates and ensure you are paying your employees according to their age and employment status, including updating salary/pay when these as changes occur.

To calculate the National Minimum Wage, it is important to understand the elements that can be included in the calculation. Basic pay, bonuses, commissions, and even some allowances count towards the NMW, whereas tips, service charges, and premium payments do not.

By accurately accounting for these factors, you’ll be confident that you’re complying with the NMW legislation.

You can read our full article to help you comply with National Minimum Wage here.


Penalties for non-compliance

HMRC takes non-compliance for incorrect payment of National Minimum Wage seriously. In 2023, it named and shamed over 200 companies for NMW breaches and ordered £5million to be repaid to workers along with fines totalling around £7million.


Advice from the experts

If you’d like to pick our brains about calculating national minimum wage for your employees or need help understanding the Working Time Regulations, book a free 1-2-1 call today with one of our team.

Get answers to your HR challenges with our unlimited HR advice line, giving you the confidence to manage people effectively.

Support managing your people

At Primed, we’re known for our personal approach and the quality of advice we provide. We have all the expertise you need under one roof, with an integrated team of HR advisors and employment lawyers, so there’s no need to go elsewhere when things get tricky.


  • Unlimited advice line with direct access to HR advisors & employment lawyers
  • Outcome-driven advice, to achieve your goals quickly and in a way that suits your business
  • Tailored response to your business and its circumstances
  • Template employment contract & essential policies
  • SRA regulated law firm ranked in The Legal 500

Your next read

Health & Wellbeing
Managing People
Employment & HR
All Sectors
All Businesses
As we celebrate International Women’s Day this month, we’re looking at how businesses can support their female workers in the...
By Primed Team 3 March 2024
Equality & Discrimination
Short Term Absence Management
Employment & HR
All Sectors
All Businesses
Love is in the air, but how do your employees really feel about working for your company?...
By Primed Team 27 February 2024
Managing People
Employment & HR
Good management can have a huge impact on the success of your business but often managers have no experience managing...
By Primed Team 13 February 2024