As we prepare for the new fiscal period in April 2024, staying proactive and well-informed about payroll changes is paramount for businesses of all sizes. After this year’s Spring Budget, the Chancellor has announced changes that will certainly affect payroll, emphasising the need to stay proactive to such adjustments.
While we may all be familiar with the planned National Minimum Wage (NMW) increase, Mr Hunt will implement a cut to National Insurance (NI) by 2p, aimed to support businesses and individuals.
National Insurance Cut
From 6th April, the starting rate for NI will change from 10% to 8%. Following a 2% reduction already in January, this further reduction underscores the government’s plan to support employers and employees during these challenging times. Additionally, for those self-employed, the rate will be cut from 8% to 6%.
If you already use our outsourced payroll services, then we’re equipped to work alongside you to navigate the imminent changes, including the new NMWs outlined below.
National Minimum Wage increase
The NMW is set to be increased from 1st April, 2024 with the government aiming to ensure fair compensation for workers across various age groups and employment statuses. It’s essential, as an employer, to understand your employee’s payroll entitlement to avoid any issues regarding pay.
Age-based minimum wage rates:
The minimum wage rates in the UK vary based on age, with different rates applying to different age groups. Below, we have outlined the updated wage rates compared to the previous ones:
| Ages | Before | After (1st April 2024) |
| 23 and over (NLW) | £10.42 | £11.44 |
| 21-22* | £10.18 | £11.44 |
| 18-20 | £7.49 | £8.60 |
| Under 18 / Apprentice | £5.28 | £6.40 |
*From 1st April 2024, workers over the age of 21 will be entitled to the National Living Wage (NLW)
Apprenticeship wage guidelines:
If you are under-19 and/or are still in the first year of your apprenticeship, you are entitled to the apprenticeship rate which from 1st April 2024, will be £6.40 per hour.
Following the completion of your first year, if you’re aged 19 or over, you will be entitled to the minimum wage corresponding to your age. For instance, an apprentice aged 21 would receive the standard NLW at £11.44 per hour after completing their first year.
We believe that these adjustments to NI and NMW reflect a commitment to fostering fairness and equity in the workplace, ensuring that workers are appropriately compensated for their valuable contributions.
If you need any guidance or help navigating the new changes, please contact our Payroll Manager, Kirsten Croston at [email protected],uk
