Pay boost for 21 & 22 year olds and younger workers

psimonparsons

March 2

National Minimum Wage increases imminent

National Minimum Wage applies to all employees and workers who have reached school leaving age at the relevant point to where they live in the United Kingdom and are at least 16.

For pay reference periods starting on or after 1st April 2024, there are significant increases in the National Minimum Wage and National Living Wage rate.

National Living Wage age drop

One of the major impacts for April 2024 is to the National Living Wage (NLW) which is increased in two aspect. Originally the qualifying age for the National Living Wage was for those teaching 25 years old, this then dropped to 23.

For pay reference periods starting on or after 1st April 2024, the NLW now starts at 21 years old.

So for those 23 or over the NLW increase is 9.8%, but for those aged 21 and 22, the increase is a more substantial 12.4%.

Employer that breach age related minimum pay

In the February 2024 list of 524 employers who failed to correctly pay minimum wage, over 10% of those shamed failed to uplift to the correct minimum wage rate following a birthday or not uplifting correctly for payment from 1st April when the new uplifted rates may apply.

The Department for Business and Trade confirms the following in its educational bulletin of the number of employer failures.

This includes the younger age bands that apply for those under 21 but who are 16 and reached their school leaving point for the area of the United Kingdom where they live and are employed.

Aged 18-20

There is a significant 14.8% rise for those aged 18-20 with the National Minimum Wage rate reaching £7.49 for pay reference periods starting on or after 1st April 2024.

School Leaving Ages 16 and 17

The National Minimum Wage rate for 16 and 17 year olds only applies from the school leaving age point relevant to the individual and the part of the UK they are from. this does point does vary between England and Wales, Northern Ireland and Scotland (who have two school leaving age points of which the Christmas point can vary from school to school).

The NMW rate for this age group significantly rises by 21.2% to £5.28.

Employers will need to ensure that the revised rate are applied in the correct pay period or when reaching the relevant school leaving point.

Breaching minimum wage! Don't.

Employers who breach minimum wage regulations often face length and invasive investigations, triggered by individual reporting breach's or targeted industry or area inspections. Employers found to have underpaid not only have to pay top up to the impacted staff, they also face significant penalties and the prospect of being publicly shamed. Criminal prosecution can also result.

Report minimum pay breach's

HMRC police NMW compliance on behalf of the DBT, and alongside ACAS and Citizens Advice, run campaigns to make employees and workers aware of their rights.

Those who suspect underpayment, their family and friends are encouraged to report the employer.

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