National Minimum & Living Wage Increase - What Employers Need to Know
The National Minimum Wage sets the amount of pay due to most workers from school leaver age up to the age of 25, with the National Living Wage applying to those aged 25 or over.
From 6 April 2021 the National Minimum Wage will increase from £8.72 to £8.91, being an increase of 2.2% and the National Living Wage will see a rise from £8.72 to £8.91 - also a rise of 2.2%. The increase comes following recommendations from the Low Pay Commission's report with one of the most significant recommendations being the extension of the National Living Wage to those aged 23 and above. The apprentice rate will also be increased by 3.6%. This, along with all other recommendations, have been accepted by the Government.
The new rates, applicable from 6 April 2021, will be:
| Rate | |
|
Age 23+ |
£8.91 |
|
Age 21-22 |
£8.36 |
|
Age 18-20 |
£6.56 |
|
Age 16-17 |
£4.62 |
|
Apprentice |
£4.30 |
|
Accommodation offset |
£8.36 (per week) |
Employers will, in particular, need to consider their workforce and identify those for whom the extension of the National Living Wage will affect and plan for the increase accordingly.