Leisure Sector Update: Changes to the National Minimum Wage (NMW) - what you need to know

The 1^st April 2024 sees the introduction of the National Minimum Wage (Amendment) Regulations 2024 which will bring with it significant increases to the NMW.

Previously, workers aged 23 or over were entitled to the National Living Wage (NLW) and for those workers under 23 or an apprentice, the NMW. From 1^st April 2024, there will also be a change to the age band and workers aged 21 or over will become entitled to receive the NLW.

The higher rate starts to apply from the pay reference period following the increase. This means if you pay your workers after the 1^st of the month their pay may not go up straight away.

As a reminder, by law you must pay your workers the minimum wage, on average, for the hours they work in a pay reference period and it is your responsibility to keep records (generally, for at least 6 years) proving that you are paying the NMW. Employers should also be mindful that some payments must not be included in NMW calculations.

It is a criminal offence for employers to not pay workers the NMW, or to fake payment records. The Government provides a calculator for employers which can be found here: https://www.gov.uk/minimum-wage-calculator-employers.