Following the recommendations of the Low Pay Commission, the Government has announced the increased National Living Wage (NLW) and National Minimum Wage (NMW) rates which will come into force from 1 April 2021.
The National Living Wage will increase by 2.2% to £8.91, and will apply for workers aged 23 and over, for the first time. These increases are expected to boost the wages of over 2 million low-paid workers.
The new National Minimum Wage rates are as follows:
| Rate from April 2020 | Rate from April 2021 | Increase | |
| National Living Wage | £8.72 | £8.91 | 2.2% |
| 21-22 Year Old Rate | £8.20 | £8.36 | 2.0% |
| 18-20 Year Old Rate | £6.45 | £6.56 | 1.7% |
| 16-17 Year Old Rate | £4.55 | £4.62 | 1.5% |
| Apprentice Rate | £4.15 | £4.30 | 3.6% |
| Accommodation Offset | £8.20 | £8.36 | 2.0% |
Employers need to make sure payroll are aware of these changes so that all workers receiving the National Minimum Wage are paid the correct rate.
For more information, please contact our Employment Team on 01603 677077.
