On 1 April 2024, the adult minimum wage will be increasing by 2%. As an employer, you’ll need to keep up to date with the latest minimum pay rates and pay your employees at least the current minimum rate. The minimum rate applies even if your employee only works a few hours for you each week or has little responsibility at work unless they are on another governement approved rate like an apprenticeship.
There are two core minimum wage rates:
- Adult minimum wage (increasing from $22.70 to $23.15 per hour)
- Starting-out & Training minimum wage subject to the specified criteria (increasing from $18.16 to $18.52 per hour)
Our step-by-step guide to implementing these increases are:
1. Communicate with your Team
Reach out to your minimum-wage employees to inform them about their new wage rate, and issue a variation letter to keep things current.
2. Update Payroll Systems
Assess your payroll setup to ensure it can accommodate the new rates efficiently with consideration to your pay cycle. The increase applies from a Monday this year so if this is part way through a pay cycle for you check that your payroll system will be able to apply a split-week increase and if not how you can make an adjustment if necessary. Last year we saw some employers having to apply the increase from the start of the pay cycle despite the increase only applying from the Saturday which led to increased costs.
3. Evaluate Your Broader Pay Structures
Be mindful of how these national changes could affect the broader pay dynamics within your business. This could include considering the potential impacts on wage relativities for all lower paid roles and to ensure your pay rates are keeping pace with the wider market.
For help with reviewing your pay structures or rates contact Louise Gregory, HR Consultant.