The National Minimum Wage (NMW) is the minimum amount that employers are legally required to pay their workers. This is set by the government and is based on the recommendations of the independent advisory group, the Low Pay Commission ...
The increase in the National Minimum Wage in April 2024 will benefit millions of workers in the UK!
The NMW is different for different age groups and is reviewed and adjusted annually to ensure that workers are receiving fair pay for their work. From the 1st of April 2024, the National Minimum Wage will see an increase, with the biggest change being that it now applies to workers aged 21 and over.
"The NMW will be set at £11.44 per hour, up from the current rate of £10.42!"
This means that workers aged 21 and over will see an increase of over £1 per hour in their pay. This is a significant change that will have a positive impact on the lives of many workers who have been struggling to make ends meet on the current minimum wage.
Just for completeness, from the 1st of April 2024, the NMW for 18 to 20-year-olds will be £8.60, if they're under 18 then it's £6.40 and the Apprentice rate will also be £6.40!
It is estimated that around 2 million workers will benefit from this change, with the majority being in the retail, hospitality, and care sectors. These are industries that were hit hard by the pandemic, and this increase in wages will provide much-needed relief for workers.
However, there are concerns that the increase in the NMW may also have some negative impacts. Some businesses, especially small and medium-sized enterprises, may struggle to afford higher wages and may be forced to reduce their workforce or cut back on hours. This could have a detrimental effect on the economy and could potentially lead to job losses.
"The increase in the National Minimum Wage in April 2024 will benefit millions of workers in the UK!"
While there may be some challenges for businesses, the government's support through the Employment Allowance will help to ease the burden. It is a positive move towards ensuring that workers are paid a fair wage for their hard work.
And I believe this will contribute to UK-wide economic growth.
Until next time ...
ROGER EDDOWES Business Godparent
Would you like to know more?
If anything I've written in this blog post resonates with you and you'd like to discover more about April's increase in the National Minimum Wage, it may be a great idea to call me on 01908 774320 and let's see how I can help you.
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Roger trained at Edward Thomas Peirson & Sons in Market Harborough before working at Hartwell & Co, followed by Chancery, as a partner. He started Essendon Accounts and Tax with Helen Beaumont in 2014 as a general practitioner with a hands-on approach.
Roger loves getting his hands dirty, working with emerging, small-to-medium and family businesses to ensure they receive the best possible accountancy advice. Roger utilises an extensive network of business contacts to leverage the best guidance and practical solutions.
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