This is the largest increase in minimum wage in cash terms and the first time it has increased by more than £1. This is also the first time that the National Living Wage will apply to all workers aged 21 and over.
Of the announcement, Amita Chauhan, Associate in the Employment team at law firm Lodders says: “The increases in both the National Living Wage and National Minimum Wage will narrow the pay gap between employees and their senior colleagues and are likely to have a positive impact on employee morale and productivity, as workers will benefit from a pay rise.
“However, employers may need to carefully consider whether the increase in the National Minimum Wage should extend to other employees, for example, more senior staff, potentially leading to increased business costs and necessitating cost-saving measures. Moreover, employers will need to review their salaries before April 2024 to avoid unintentional breaches of the new rates.”
