What is National Minimum Wage and Living Wage?
In the UK we use the National Minimum Wage and National Living Wage system to pay people, some factors like age and type of employment affect this total too. The government provides guidance on what these rates are and where they apply. To best understand National Minimum Wage you can check the governments website for the current National Minimum Wage and Living Wage rates for all age brackets.
The Living wage from 2024 is payable to anyone over the age of 21. This is similar to a universal income model the government started a number of years ago. The National living wage is at £11.44 from April 2024 onwards.
What are the new rates?
It was announced, for over 21 year olds, this will now be at £11.44 per hour. This means if someone works (after breaks) From 2024, the higher rate will be available for 21 and 22 yr olds not just over 23 yr olds:
The rates for under 21 year olds, at the time writing this has not been released yet.
This is basic wage excluding bonus (and for our hospitality network, excluding tips/service charge). This is after breaks, you might have a lunch break, afternoon break and morning break. These are taken off when calculating it. Most companies tend to give 15-20 mins in the morning & afternoon and 30min to 1 hr for lunch. There also a move away from long hours and shorter weeks in recent years
National Living Wage and National Minimum Wage rates for 2024
|Increase in pence
|National Living Wage (21 and over)
|18-20 Year Old Rate
|16-17 Year Old Rate
These new pay rates will start from April 2024 and was announced on November 21st 2023 by the Government.