The start of the 2023/24 financial year is bringing several changes that will impact the contracting industry, notably in National Minimum and National Living Wage, which will see nearly a 10% increase from the previous year.
For umbrella contractors on lower hourly rates, this is great news as it will ultimately mean higher income. Whether they receive National Minimum Wage or National Living Wage will come down to their age, but meeting these hourly rates is a legal requirement for all those that meet the criteria, including agency workers. Contracts that include payments below minimum wage are not legally binding.
For agencies engaging with contractors and utilising the expertise of an umbrella company, this of course means ensuring that a contractor’s hourly rate ensures they receive this minimum rate once an umbrella margin has been deducted.
Hear what our MD, Mike Lowndes, has to say about these changes in our video below:
Here is a full list of the changes by contractor age:
Under 18 – Increasing from £4.81 to £5.28
18 to 20 – Increasing from £6.83 to £7.49
21 to 22 – Increasing from £9.18 to £10.18
23 and over – Increasing from £9.50 to £10.42
If you have any questions with regards to your contractors’ hourly rate or you would like to find out more about our low margin ‘in rate’ of £13.10, speak to the Exchequer team today on 01244 500 195.