Increase on National Minimum Wage &
National Living Wage from 1st April 2024

---

The increase in pay rates is nearly upon us & it can be a stressful time for many salon owners when thinking of both the short & long term cost implications.

Below are 6 steps that salon owners can follow to ensure they are well prepared for the upcoming changes.

The Increases;

• For workers aged 23 and over (the National Living Wage): an increase to £11.44 per hour.
• For workers aged 21 to 22: As the threshold for the National Living Wage has been lowered to 21 and over, the new National Living Wage rate of £11.44 per hour will apply.
• For workers aged 18 to 20, the hourly rate will be £8.60, rising from £7.49 per hour.
• For those under 18: there is an increase from £5.28 to £6.40 per hour.
• The apprentice rate will see an uplift to £6.40 per hour, rising from £5.28 per hour dependent on apprentice age and if they are in their first year of their apprenticeship.

Employers must pay at least the apprentice minimum wage for apprentices aged 16-18, and for apprentices aged 19 or over in the first year of their apprenticeship.

After their first year, apprentices aged over 19 should receive at least the national minimum wage, or the national living wage, depending on their age.

6 Steps to Prepare Your Salon for Wage Adjustments

---

1. Review Your Payroll: Begin by reviewing your current payroll to identify which employees will be affected by the new rates. Early preparation will help avoid last-minute rushes and ensure compliance.
2. Keep track of Birthdays: to ensure that their pay continues to comply with the NLW/NMW when they move into a different age band
3. Check implications of Pay Reference Period. The hourly rate of the NLW/NMW which a staff member is entitled is the rate which applied to them on the 1st day of that pay reference period. For example, if they are paid the NLW/NMW & there is an increase on 1st April & they get paid on the 15th of the month, this would mean…They would be paid the ‘old’ rate up to 15th April
   They would receive the ‘new’ rate for 16th April to 15th May
4. Communicate with Your Team: Transparency is key. Inform your employees about the upcoming changes and how they will impact their salaries. Open communication will help manage expectations & avoid confusion
5. Adjust Your Budget: With increased wage rates, your salon’s labour costs will rise. Review your budget to accommodate these changes, which may involve adjusting your pricing, reducing colour wastage, reviewing stock levels & re-ordering
6. Seek Professional Advice: Navigating employment law can be complex. If in doubt, consulting with legal experts or HR professionals can provide clarity and ensure your salon remains compliant.