National Minimum Wage increase

In April, the national minimum wage (NMW) will be raised to £11.44 per hour for workers aged 21 and over. Younger employees, and those on an apprenticeship wage, will also see their pay boosted as a result of the changes.

Based on the new rates, a full-time 23 year-old employee contracted to work 37.5 hours per week will be paid around £22,308 per year, pre-tax. That’s compared to an apprentice, who would receive an annual salary of £12,480, pre-tax..

What do I need to do? Conduct a cash flow forecast to calculate how the increased labour costs will impact your overheads. With the NMW adjusting, now is a good time to analyse your company payroll and check if you are offering a competitive wage to staff.