Minimum Wage Increase on 1st April 2021

The Low Pay Commission’s recommendations for the new National Minimum Wage were approved by Government and these new wage rates will come into effect on the 1st April 2021. The National Living Wage of £8.91 per hour will now be paid to employees aged 23 years and over instead of the previous age threshold of 25 years and older. This is an increase of 2.2% from £8.72.

The National Minimum Wage (NMW) is the minimum pay per hour most employees are entitled to by law. An employee's age and if they are an apprentice will determine the rate they will receive. The hourly rate for the minimum wage depends on an employee's age and whether they are an apprentice:

• The apprentice rate is applicable to apprentices aged under 19 and those aged 19 or over when they are in the first year of their apprenticeship
• Employees under 23 years old are entitled to the National Minimum Wage
• Employees aged 23 or over are entitled to the National Living Wage

Rates from 1 April 2021 will be:

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Posted byDebbie ClarkeinPay/WagePayroll