NLW and NMW in 2024

National Living Wage (NLW) and Minimum Wage in 2024

The National Minimum/Living Wage rates for 2023 saw an increase of 9.7% in most age categories, compared to the previous year’s entitlement, as part of the guidance from the Low Pay Commission (LPC).

However, this increase is only part of a process to meet the Government’s aim of two-thirds of median earnings by 2024, and the LPC are exploring the impact of the next set of suggestions for reaching this target.

In April 2023, the rates were increased as follows:

• The National Living Wage (aged 23 years and over) increased to £10.42 per hour.
• 21–22 year old’s rate of pay increased to £10.18 per hour.
• 18–20 year old’s rate of pay increased to £7.49 per hour.
• 16 –17 year old’s and apprentice’s rate of pay increased to £5.28 per hour.

There are already some estimated targets for the NLW to increase from £10.42 to between £10.90 and £11.43 per hour in April 2024.

Another consideration for the Government is whether to remove the apprentice rate entirely, meaning that an apprentice’s rate of pay is solely determined by their age category.

However, one thing that has already been confirmed is that the Government will be reducing the eligible age for the NLW to 21 years of age.

This was evidenced in the figures for April 2023, where we saw 21–22 year olds receiving a higher annual increase to their rate of pay at 10.9%, compared to other categories, in order to reduce the gap to the NLW rate of pay.

Further clarity on the Government’s decisions around the NLW and NMW rates is expected to be published in October 2023.