Previously the National Living Wage (NLW) was the minimum rate to be paid to employees aged 23 and over, however Jeremy Hunt the Chancellor, has recently announced that with effect from April 2024, the NLW will apply to those employees aged 21 and over as well. This is the first time the NLW has applied to employees between the ages of 21 & 22.
With effect from April 2024, the rate will increase from £10.42 to £11.44 per hour. The timing of this announcement is so that employers can prepare for the increase, given that it represents £1,800 extra per year for full time employees aged 23 and over, and £2,300 extra per year for those employees aged 21 & 22.
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