The minimum wage for workers aged 21 and over is increasing from £10.42 to £11.44 per hour, a significant 9.8% rise aimed at helping workers cope with the rising cost of living. Younger workers under 21 will also see their minimum pay increase.
Husky Payroll’s system helps businesses by flagging instances where workers’ salaries fall below the minimum wage, especially if they are part of Salary Exchange programs. If contributions cause a worker’s post-salary exchange salary to dip below the minimum, Husky will alert the employer, saving them the hassle of monitoring it themselves.
How much is the minimum wage?
The minimum wage, also known as the National Living Wage, varies depending on the employee’s age. Here are the new rates effective from April 1, 2024:
| Age Bracket | April 1, 2023 (£ per hour) | April 1, 2024 (£ per hour) |
| 21 and over | £10.41 | £11.44 |
| 18 to 20 | £7.49 | £8.60 |
| Under 18s | £5.28 | £6.40 |
| Apprentices | £5.28 | £6.40 |
Minimum Wage Salaries for Age 21 and Over:
To illustrate how these changes impact salaries, here’s a breakdown based on hours worked per week:
| Hours Worked | April 1, 2023 (£ per hour) | Salary per annum | April 1, 2024 (£ per hour) | Salary per annum | Increase per annum |
| 35 | £364.70 | £18,964.40 | £400.44 | £20,822.90 | £1,858.50 |
| 37.5 | £390.75 | £20,319.00 | £429.04 | £22,310.26 | £1,991.26 |
| 40 | £416.80 | £21,673.60 | £457.64 | £23,797.60 | £2,124.00 |
Therefore, a worker on a typical 35h/week will have their salary increased from £18,964/year to £20,823.
Do employers have to pay the minimum wage?
Yes, in the UK, employers must pay their workers at least the minimum hourly wage set by law. Failing to do so can result in fines from HMRC, the UK tax authority, and harm a company’s reputation.
Who sets the minimum wage?
The government determines the minimum wage rates annually based on recommendations from the independent Low Pay Commission, which considers various economic factors.
Who isn’t entitled to the minimum wage?
Some groups, such as the self-employed, company directors, volunteers, and certain program participants, do not qualify for the minimum wage.
For more information on the 2024 minimum wage rates, visit the government’s official webpage: Minimum Wage Rates for 2024.
The workplace pension everyone deserves
Husky’s technology unlocks the power of workplace pensions for businesses of all sizes. We offer pension schemes, salary exchange, and payroll systems to enhance financial well-being and prosperity.
