Statutory Instruments

2024 No. 432

TERMS AND CONDITIONS OF EMPLOYMENT

The National Minimum Wage (Amendment) (No. 2) Regulations 2024

Made

25th March 2024

Coming into force

1st April 2024

The Secretary of State, in exercise of the powers conferred by sections 1(3), 2(1), (2)(d) and (5), 3(2)(b) and 51(1)(a) of the National Minimum Wage Act 1998(1), makes the following Regulations.

A draft of these Regulations was laid before Parliament in accordance with section 51(5) of the National Minimum Wage 1998 and approved by a resolution of each House of Parliament.

Citation, commencement and extent

1.—(1) These Regulations may be cited as the National Minimum Wage (Amendment) (No. 2) Regulations 2024.

(2) These Regulations come into force on 1st April 2024.

(3) These Regulations extend to England and Wales, Scotland and Northern Ireland.

Amendments to the National Minimum Wage Regulations 2015

2.—(1) The National Minimum Wage Regulations 2015(2) are amended as follows.

(2) In regulation 4 (the national living wage) for “£10.42” substitute “£11.44”.

(3) In regulation 4A(1) (workers who qualify for the national minimum wage at a different rate)—

(a)omit sub-paragraph (a);

(b)in sub-paragraph (b) for “£7.49” substitute “£8.60”;

(c)in sub-paragraph (c) for “£5.28” substitute “£6.40”;

(d)in sub-paragraph (d) for “£5.28” substitute “£6.40”.

(4) In regulation 4A(2) for “paragraph (1)(a), (b) and (c)” substitute “paragraph 1(b) and (c)”.

(5) In regulation 16(1) (amount for provision of living accommodation) for “£9.10” substitute “£9.99”.

Kevin Hollinrake

Parliamentary Under Secretary of State

Department for Business and Trade

25th March 2024

Explanatory Note

(This note is not part of the Regulations)

These Regulations amend the National Minimum Wage Regulations 2015 (“the 2015 Regulations”) (S.I. 2015/621). These Regulations come into force on 1st April 2024.

Regulation 2(3)(a) abolishes the rate of the national minimum wage for workers who are aged 21 or over (but are not yet aged 23 years); so that workers aged 21 or over will now qualify for the national living wage, rather than a lower national minimum wage rate (regulation 4A(1)(a) of the 2015 Regulations).

Regulation 2(2) increases the rate of the national living wage for workers who are aged 21 or over from £10.42 to £11.44 per hour (regulation 4 of the 2015 Regulations).

Regulation 2(3)(b) increases the rate of the national minimum wage for workers who are aged 18 or over (but not yet aged 21) from £7.49 to £8.60 per hour (regulation 4A(1)(b) of the 2015 Regulations).

Regulation 2(3)(c) increases the rate of the national minimum wage for workers who are under the age of 18 from £5.28 to £6.40 per hour (regulation 4A(1)(c) of the 2015 Regulations).

The apprenticeship rate applies to workers within regulation 5(1)(a) and (b) of the 2015 Regulations. Regulation 2(3)(d) of these Regulations increases the rate for such workers from £5.28 to £6.40 per hour (regulation 4A(1)(d) of the 2015 Regulations).

Regulation 2(4) of these Regulations removes the reference within regulation 4A(2) of the 2015 Regulations to the hourly rate for workers aged 21 years or over but are not yet aged 23 years. This reflects the change made by Regulation 2(3)(a) of these Regulations.

Regulation 2(5) increases the accommodation offset amount which is applicable where any employer provides a worker with living accommodation from £9.10 to £9.99 for each day that accommodation is provided (regulation 16(1) of the 2015 Regulations).

A full regulatory impact assessment of the effect that this instrument will have on the costs of business and the voluntary sector is available from the Labour Market Directorate, Department for Business and Trade, Old Admiralty Building, London SW1A 2AY and is annexed to the Explanatory Memorandum which is available alongside the instrument on www.legislation.gov.uk.

(1)

1998 c. 39; section 3(1A) was inserted by S.I. 1999/583 and amended by S.I. 2007/2042. The reference in section 1(3) to “prescribe” means prescribe by regulations: see section 55(1).