Are you ready for the changes to the NLW and NMW?
The Government has introduced updates to the National Living Wage (NLW) and the National Minimum Wage (NMW).
These adjustments aim to support workers by ensuring a fair wage that reflects current economic conditions.
From 1 April, the National Living Wage (NLW) will expand to include those who are 21 years old.
Any employees affected by this change will need to be moved onto the NLW when necessary.
Here is a reminder of the new rates:
- Workers aged 21 and over (NLW) = £11.44 (up from £10.42).
- 18-20-year-old = £8.60 (up from £7.49)
- 16-17-year-olds = £6.40 (up from £5.28)
- Apprentices under 19, or over 19 and in the first year of their apprenticeship = £6.40 (up from £5.28)
The increase in these rates could also affect your payroll so you’ll need to strategise efficiently to avoid the associated risks with this.
SSP Rate Change
From 6 April, there will also be an increase in Statutory Sick Pay (SSP) from £109.40 per week to £116.75 per week.
It is important that you speak to your accountant before this date to protect your business from unexpected bills and expenses.
Preparing for the changes
To prepare for these wage adjustments, business owners will need to take several steps.
First, conduct a thorough review of your current payroll to identify employees eligible for the new rates.
Updating your payroll system to incorporate these changes by 1 April is going to be essential for compliance.
You’ll also need to communicate the upcoming wage changes to your employees to maintain transparency and trust within your organisation.
Additionally, assess the financial impact these increases may have on your business operations – you might need to revisit your pricing strategy or budget to accommodate the higher labour costs.
Offering training and development to employees can also enhance productivity, helping to offset the increased wage expenses.
Finally, if you require further guidance or advice on this, you should speak to a qualified and experienced payroll specialist who can assist you in meeting the compliance requirements without breaking the bank.
Please get in touch with one of our payroll experts for more information.