As an employer, you need to be aware of the increases to the NMW (National Minimum Wage), often known as NLW (National Living Wage), from April 2024. You may need to start planning now because this can affect your prices going forward.
You need to remember that the employer NIC threshold is not increasing so, in most cases, as well as the increase in wages costs, there will be NIC on top.
Effectively, if you give someone a £1 pay rise, they usually won’t get £1! There will be tax, NIC and pension to pay, so the government will get over 40% back!
The new rates are as follows:
- 23 and over: £11.44 (increase of £1.02 – 9.8%)
- 21 – 22 £11.44 again – the first time these ages have been included in the general rate (an increase of £1.26 – 12.3%)
- 18-20: £8.60 (increase of £1.11 – 14.8%)
- 16-17 and apprentices: £6.40 (increase of £1.12 – 21.2%)
- The accommodation offset will also increase to £9.99 per day (increase of 89p).
You need to make sure your payroll is ready for the changes – and take them into account when considering future profitability. Remember that your suppliers also face the same increase in costs, so expect their prices to rise.
You may want to read our article about Pricing.
If you need help with your payroll (or accounts or pricing) we have experienced staff, here to help. Contact us for a FREE chat to find out how supportive (and friendly) we can be.
Telephone – 01509 816150
Email – enquiries@centralbusiness.co.uk
Or you can use our online enquiry form.