All workers over 21 began receiving the National Living Wage (NLW) of £11.44 per hour from the start of this week. Additionally, workers across Gloucestershire will see a cut in their NI contributions from tomorrow (April 6).

So that's all good news, right?

Wage changes which are calculated for the government by the independent Low Pay Commission (LPC) have been operating for 25 years and 2024's new rate stands 30% higher than the adult minimum wage in 2015. The latest change fulfils a recommendation the LPC made back in 2019 and will see the minimum wage for 21-22 year olds increase by 12%.

Heralding these changes, the LPC said: "The overall impact of this change on employers is likely to be small: most 21-22 year olds are already paid at or above the National Living Wage. We have also laid the groundwork for the transition by gradually closing the gap between the 21-22 Year Old Rate and the NLW over the past two years. By 2023 there was just 24 pence difference between the rates."

But the hospitality sector is far from happy. UKHospitality is warning that the steeper wage bill will increase sector costs by £143m - and the timing is far from ideal.

In a statement, the trade body said: "As a sector reliant on its workforce, employment costs make up over half of operating costs."

Landing amid business rates rises, a further £20m will also be added to costs for the sector in England and Wales: "The tax on property heavily penalises community-based businesses, like hospitality. After a collective failure to act in Cardiff and Westminster, UKHospitality is calling on both governments to rebalance the costs that hospitality businesses pay and reduce its cost burden so they can make the investments needed to grow, create communities in which people want to live, work and invest."

Key measures to help the sector would include a temporary reduction in the rate of employer National Insurance Contributions, HospitalityUK says, adding that the government must "reduce the rate of VAT on hospitality, leisure and tourism to 12.5%, returning to the effective policy during the pandemic and matching the average of our continental competitors."

But the National Living Wage Foundation said this week's £11.44 move doesn't go far enough: "This still falls short of the voluntary real Living Wage, the only wage rate calculated based on the cost of living, which is currently £12 for workers in the UK and a higher rate of £13.15 in London.

Eighteen to 20-year-olds, many of whom are living away from home and working full-time, are still at risk of being paid just £8.60 per hour, the Foundation added. It's urging the government to adopt its own calculated Real Living Wage for all workers aged 18 and over.

Katherine Chapman, Director of the Living Wage Foundation said: "The rise in the statutory National Living Wage from April 1 is welcome news for the 3.7 million low paid workers across the country, but this still falls short of a wage which takes into account the real cost of living."

Cross-industry support for the Foundation's work also continues to grow: more than 14,000 employers across the UK are now Living Wage accredited and, the Foundation says, are committed to going "above the government minimum to ensure their staff are always paid in line with the cost of living".

Workers in Gloucestershire also have reason to be cheerful when their National Insurance contributions drop tomorrow from 10% to 8%.

On an average salary of £35,000, that spells £450 they keep in their pockets. And the drop to 8% is, of course, the second this year: on January 6, employees saw a cut from 12% to 10% on earnings between £12,571 and £50,270.

And for the self-employed, contributions on all earnings between £12,570 and £50,270 now see a cut from 9% to 6%.

However, the current freeze in income thesholds, at which tax is paid, until 2028 suggests that the result may not be so rosy: until that date, income tax bills will not fall.

So while employers see their wages bill rise, employers generally - with everyone still being affected by the ongoing rise in prices - may not find themselves bathed in gratitude.

But however bosses oversee these changes in this month's accounts, oversee them they must: prosecution figures show that businesses in the UK in the last decade found to have either mistakenly or intentionally paid less than the NLW were collectively fined more than £7m.