Are you an employer?

The National Living Wage and National Minimum Wage rates increased on 1 April 2024. Make sure you update your payroll, so your workers get paid at least what they are legally entitled to. 

The National Living Wage was introduced on 1 April 2021 for workers aged 23 or over. From 1 April 2024, the National Living Wage will be for all workers aged 21 or over.

National Living Wage rates 

 21+ 18-20 Under 18 Apprentice 
Old rate up until 31 March 2024£10.42 £7.49£5.28 £5.28 
New rate from 1 April 2024£11.44 £8.60 £6.40 £6.40

Employers should always carry out the necessary checks – see the guidance: Calculating the Minimum Wage

Even if you are paying your workers at or above the National Living Wage or National Minimum Wage, you could still be underpaying them. This can easily happen when an employer makes wage deductions or doesn’t pay for all time worked. 

Some of the most common mistakes are listed below. Check whether any of these could apply to you. If you discover you have been paying your workers below the correct minimum wage, you must pay any arrears immediately, including any back pay.

Common mistakes:

  • Not going back far enough on an employee’s earnings if you have underpaid them
  • Not paying employees for overtime worked
  • Deducting the cost of work wear or tools from an employee’s wages
  • Not realising that a recent birthday of an employee can impact the rate they should now be paid
  • Not paying employees while they are travelling for work
  • Counting tips as part of an employee’s pay

Acas Helpline

Acas is an independent public body that provides free and impartial advice to employers and their representatives.

You can  call the Acas Helpline to get advice and support to ensure that you understand what you need to do to pay your workers correctly.