Employers must be ready for upcoming changes to pay in 2024
The arrival of a new year heralds changes, particularly in statutory pay rates in the UK. It is essential that employers gear up for these adjustments, set to be implemented from April 2024.
With a substantial increase in rates anticipated, employers and their payroll teams must be well-prepared in advance. Adapting to these changes is essential to fulfilling legal duties and maintaining compliance.
Changes in the National Living and Minimum Wage
Responding to last year’s higher inflation rates, the National Living Wage (NLW) and National Minimum Wage (NMW) are due to rise by nearly 10 per cent. The NLW will jump from £10.42 to £11.44 per hour.
A notable change in April 2024 is the extension of the NLW to individuals aged 21 and over, previously reserved for those over 23. This change will benefit thousands more employees by providing a higher wage.
The NMW rates will also see an increase across all categories:
- Ages 18 to 20: £8.60 per hour
- Under 18: £6.40 per hour
- Apprentices: £6.40 per hour
Revised Statutory Paternity Leave and Pay
Employers should also prepare for the revised Statutory Paternity Leave (SPL) and Pay (SPP), effective from the 2024/25 tax year.
The Government aims to make it easier for fathers to take leave and receive pay, introducing the following changes:
- Paternity leave can now be split into two separate one-week blocks.
- The period for taking this leave extends from 56 days to 52 weeks after the child’s birth or placement.
- A ‘Notification of entitlement’ is required 15 weeks before the birth or placement.
- A leave request form must be submitted 28 days before the intended leave dates.
While the eligibility and payment rate remain the same, these rules offer greater flexibility.
If you are unsure of how these changes affect you and your business or would like support to remain compliant with these new payroll rule, please contact our team today.