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Posted by Niche Recruitment
21st February 2024
National Minimum Wage Increase April 2024
In just under 6 weeks, the National Minimum Wage will increase. From 1st April 2024, an estimated 1.6 million employees will benefit from the largest-ever increase in cash terms.
Since its introduction in April 1999, employees will see their hourly rate increase by over £1.00 per hour for the first time.
The impact on both employees and employers is significant. But, how much more will individuals earn per year from April 2024? How will the increase in the National Minimum Wage affect businesses?
New Hourly Rates
Before we dive into the figures, it’s worth noting that the National Living Wage, currently offered to those aged 23 and over, will be extended to those aged 21 and over.
From 1st April 2024, UK employees must be paid as shown:
Impact on Employees
Increasing the minimum wage can have a far-reaching effect on those in employment. Financial stress was reported by a staggering 76% of workers in the UK over the past 12 months.
Earning a salary that means basic living essentials such as rent, bills and food are more affordable will ease some of the pressures low-paid workers have been experiencing due to the cost of living.
For those aged 21-22 working full time, the National Minimum Wage increase is set to boost their earnings by over £2,400 per year, with those aged 23 and over benefiting from an additional, £1,900 per year (gross).
Impact on Employers
Businesses have been affected in similar ways to individuals when it comes to rising costs. The rise in the National Minimum Wage will add pressure this new financial year for many small business owners.
Typically operating on tighter margins, SMEs could struggle to absorb the rising costs without other areas of the business being affected.
Finding ways to work smarter, tweaking business practices and introducing automation are 3 areas that Charles Cotton, Senior Advisor at CIPD suggests businesses can look at, to improve productivity and maximise revenue potential.
Salary Benchmarking
Knowing how you compare to your competition is crucial to staying ahead of the game. Attracting and retaining top talent is key, and benchmarking your overall employee offering is imperative to understand where you sit within the market.
Data, insights, recommendations and more, our Salary Benchmarking reports will arm you with the information you need to keep on top of industry trends.
Curious to learn how our reports could benefit you? Get in touch today!
