Statutory rates and national minimum wage (NMW) and national living wage (NLW) are reviewed annually, and usually increased. The dates from the which the increase applies from can change from year to year, and care should be taken to ensure they are applied correctly.

National Minimum Wage (NMW) and National Living Wage (NLW)

From 1 April 2024 you should be aware that the NLW, the upper age band of NMW, will be expanding to include those aged 21. Employees that are affected, so that they should be moved onto the NLW when necessary to avoid underpaying those workers.

In relation to domestic workers, this arrangement must cease from 1 April 2024. Currently, where a worker is not a family member but is treated as such in relation to living space, meals, sharing of family tasks, and participation in leisure activities, doesn’t have to pay for food or lodging and does work that otherwise a family member would, they do not have to be paid NMW/NLW.

However, this will no longer be available from 1 April 2024, and will need to make other arrangements for this worker, including increasing their pay to at least NMW/NLW. They should remember, any deductions relating to accommodation or pay must be lawful. Subject to the accommodation offset, these deductions should not make the pay fall below NMW/NLW.

Alongside minimum wage increases, pay relating to statutory family related leave is also rising from £172.48 to £184.03 (including statutory maternity, adoption, paternity, shared parental and parental bereavement pay).

statutory sick pay will also rise from 6 April 2024 from £109.40 to £116.75.

Finally, your client asked regarding the limit on a week’s pay for the purposes of redundancy calculations. This, along with other tribunal compensation limits, is set out below.

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