From 1 April 2024 the National Minimum Wage (NMW) rates will rise by the largest amounts since the NMW was introduced. The new NMW hourly rates are:
| Age of worker | NMW Rate | Increase in pence | Percentage increase |
| National Living Wage (21 and over* | £  11.44 | £    1.02 | 9.80% |
| 18-20 Year Old Rate | £    8.60 | £    1.11 | 14.80% |
| 16-17 Year Old Rate | £    6.40 | £    1.12 | 21.20% |
| Apprentice Rate | £    6.40 | £    1.12 | 21.20% |
| Accommodation Offset | £    9.99 | £    0.89 | 9.80% |
*Â Please note that the rate applies to 21 and over now, not 23 and overÂ
Employers, please be careful about making deductions from wages that reduce the gross amount below the relevant NMW rate. For example, you may deduct sums for employee uniforms, staff meals, childcare vouchers, or even for places at child nurseries where the employee also works.
If you provide such benefits this needs to be done outside of the payroll function. Our payroll team can advise on the best way to structure this.
If, as an employer, you charge workers rent where accommodation is provided,  the amounts of rent which are permitted as a deduction from the NMW rate are strictly limited by the daily accommodation offset, which is currently £9.10 and will rise to £9.99 from 1 April 2024.
Where the NMW rules are broken HMRC can impose penalties of up to 200% of the amount of NMW underpaid, up to £20,000 per worker.
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