Payroll reminders: minimum wage rates and NI rates

Payroll reminder - minimum wage rates increase on 6th April

It is important to remember that the minimum wage pay rates are increasing with effect from 1 April 2024. Failing to increase to the new rates can result in penalties being charged. 

The new minimum wage payment rates are set out below. 

For further information: https://www.gov.uk/national-minimum-wage-rates

Payroll reminder – National Insurance rate reducing from 6 April

From 6 April 2024, the 2% cut in employee national insurance contributions will come into effect. Employees will now be deducted 8%, rather than 10%, on monthly earnings between £1,048 and £4,189. A 2% deduction on earnings above this amount continues to apply.

There is no change to the rate of employers’ national insurance, which stays at 13.8% on monthly earnings above £758.  

It is important that your payroll software is up to date so that it deducts the right amount of national insurance from your staff.

You may need to check with your payroll software provider, or you may need to update your software to make sure that the calculations will be made correctly.

For more information: https://www.gov.uk/government/publications/changes-to-national-insurance-contributions-from-6-april-2024/reduction-to-the-main-rates-of-primary-class-1-and-class-4-national-insurance-contributions

Further help

If you need assistance with any aspect of your payroll, please do not hesitate to contact us. We will be happy to help!

About the Author

Paul Newbold

Partner

After qualifying with KPMG where he gained significant audit experience, Paul joined Torgersens in 1991 and became the firm’s audit partner in 2000. Paul employs his broad range of financial skills to provide commercial and accounting advice to a range of owner-managed businesses in the independent retail, education and professional services sectors. He also has extensive experience dealing with charities, Registered Social Landlords and not-for-profit organisations and co-operatives.   Outside of work, Paul likes to visit Eastern France and South-West German and read novels by David Morrell, Michael Blake and Harper Lee. He also likes watching films, his favourite is The Shawshank Redemption.

To get in touch please e-mail paul.newbold@torgersens.com.