Payroll reminder – minimum wage rates increase from 1st April & reduction in National Insurance rates from 6th April
Posted 08/04/2024
It is important to remember that the minimum wage pay rates are increasing with effect from 1 April 2024. Failing to increase to the new rates can result in penalties being charged.
The new minimum wage payment rates are set out below:
| 2023/24 rate | 2024/25 rate | |
| 21 and over (previously 23 and over) | £10.42 | £11.44 |
| 18 to 20 | £7.49 | £8.60 |
| Under 18 | £5.28 | £6.40 |
| Apprentice | £5.28 | £6.40 |
| Accommodation Offset | £9.10 | £9.99 |
For HMRC guidance, please see https://www.gov.uk/national-minimum-wage-rates
From 6 April 2024, the 2% cut in employee national insurance contributions will come into effect.
Employees will now be deducted 8%, rather than 10%, on monthly earnings between £1,048 and £4,189. A 2% deduction on earnings above this amount continues to apply.
There is no change to the rate of employers’ national insurance, which stays at 13.8% on monthly earnings above £758.
It is important that your payroll software is up to date so that it deducts the right amount of national insurance from your staff.
You may need to check with your payroll software provider, or you may need to update your software to make sure that the calculations will be made correctly.
For HMRC guidance, please see https://www.gov.uk/national-insurance-rates-letters
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