The following tables show how the NMW and NLW come together.
The new rates are as follows:
| NMW rate from 1 April 2024 | 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% |
The current rates (from 1 April 2023) are:
| 23 and over | £10.42 |
| 21 to 22 | £10.18 |
| 18 to 20 | £7.49 |
| Under 18 | £5.28 |
| Apprentice | £5.28 |
The rate increases are the largest at any one time and since the inception of NMW. The increase follows recommendations put forward by the Low Pay Commission (LPC) and allows the Government to meet its targets set in 2019.
The new rates ensure that all those over the age of 21 are now paid at the NLW; the 23 and over band has been combined with the 21 to 22 band. At the other end of the scale apprentice who reach 21 whilst still in the apprenticeship will also be entitled to NLW.
For further details concerning the changes announced by the Government, please speak with a member of the Employment Taxes team.