With the imminent changes to minimum wage rates scheduled for April 1st, 2024, business managers and owners need to get ready.
The adult minimum wage will rise from $22.70 to $23.15 per hour, while the starting-out and training minimum wage will increase from $18.16 to $18.52 per hour. These rates are before tax and any lawful deductions, such as PAYE tax, student loan repayment, or child support.
If you haven't already done so, now is the time to engage with your accountant, payroll provider, or finance and HR teams. Use this opportunity to ensure that your employment records, processes, and systems are current.
To learn more about wage rates, exemptions, and how to prepare for the increases, visit the Minimum Wage website.
Some key steps to prepare are to advise your team, check payroll systems and processes, address employee pay relativity, update business budgets, and upskill on minimum wage obligations.
It is imperative to notify employees about the minimum wage and the upcoming increase through a letter or email and update their employment contract accordingly.
Confirm with your payroll provider or relevant personnel that systems will be adjusted for the new rates, especially for employees transitioning to adult wages. Considering internal wage relativity and external benchmarking, be prepared for negotiations with employees on higher wages and incorporate expected increased costs into your short and medium-term budget forecasts to manage higher wage and holiday pay liabilities.
Another critical factor is understanding key details, such as its applicability to all hours worked and exceptions for specific situations, like employees under 16 or those with minimum wage exemption permits.
Take action now to ensure compliance and readiness for the upcoming changes.
