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Minimum Wage Increase from 1 April 2024

As a business owner or manager, you need to be ready for the minimum wage rate increase from 1 April 2024.

  • Adult starting wage will go up from $22.70 to $23.15 an hour
  • Starting-out and training minimum wage will go up from $18.16 to $18.52 an hour
  • All rates are before tax and any lawful deductions, for example, PAYE tax, student loan repayment, child support.

If any employment agreements (contracts) are not current or you did not give one to your employees, now is an ideal time to discuss with them in good faith. Update the contract with any terms and conditions that were agreed to by both parties before the contracts were last reviewed. Make sure they include all the mandatory clauses a contract should have by law. Another useful tool is the employment agreement builder if your employees do not have one.

Employment agreement builder

Things an employment agreement must contain

Now is also an ideal time to ensure you know the details around the minimum wage, including that:

  • it applies to all hours worked, unless both parties agree to a higher rate in the employment agreement
  • it applies to employees paid with a salary or piece rates or commission.

Note the minimum wage does not apply in some situations including:

  • employees under 16 years of age
  • where a Labour Inspector has issued a minimum wage exemption permit to an employee who has a disability that limits them carrying out their work.

Minimum wage exemption for people with disability

Unfortunately, with details changing all the time and at such speed, we need to add that the above content is correct at the time of writing as far as the author is aware and is very much subject to change. We have, to the best of our ability, acknowledged any shared content. All related links provided to the corresponding websites are subject to change as they are live links.