Under the minimum wage legislation, workers must be paid at least the statutory minimum wage for their age. There are two types of minimum wage, the National Living Wage (NLW) and the National Minimum Wage (NMW). The NLW & NMW increase on April 1st each year.
National Living Wage (NLW)
The NLW is a higher statutory minimum wage payable to workers whose age is above NLW age threshold – which is currently workers aged 21 and above from 1st April 2024 (previously aged 23 and above for 23/24 tax year).
National Minimum Wage (NMW)
The NMW is payable to workers who are below the age of entitlement to the NLW . The NMW used to apply to any workers above compulsory school leaving age and under the age of 21.
There are two NMW age bands:
- Workers aged 18 to 20
- Workers aged 16 and 17
Apprentices
There is also a separate NMW rate for apprentices. It is payable to apprentices under the age of 19 and also to those who are over the age of 19 and in their first year of their apprenticeship.
Employer Responsibility
Employers must ensure that they are paying workers on the NLW or NMW at the new rates from the 1 April 2024.
It is also important to ensure that there is a process in place to identify when a worker moves into a new age bracket.
How PPF Can Help
As part of our Payroll Service we will ensure that your employees are paid in line with these minimum levels, and therefore keep you compliant.
If you need help with your payroll, let’s have a chat – head over to our Get Started page, complete the quick questionnaire then at the end there is a link to book a discovery call with us.
Source: HMRC
