Minimum wage increases come into force from 1st April each year and this year is no exception. With the latest rates also being announced in the 2021 Budget.
If you have not already done so, now is the time to check you have the appropriate pay adjustments in hand.
What are the new minimum wage and National Living Wage?
The new rates will be:
- Age 23 or over (National Living Wage rate): £8.91 (up from £8.72).
- Age 21 to 22: £8.36 (up from £8.20).
- Age 18 to 20: £6.56 (up from £6.45).
- Age 16 to 17: £4.62 (up from £4.55).
- Apprentice rate: £4.30 (up from £4.15).
- Accommodation offset £8.36 per day (up from £8.20).
What changes have come into effect?
The eagle-eyed will have spotted that the National Living Wage, which currently applies only to workers age 25 or over, is being extended to 23 and 24-year-olds for the first time.
As always, employers should take particular care to diarise employee birthdays where this means a rate increase, as well as the employment anniversary of an apprentice aged over 19, as the apprentice rate applies only to apprentices under 19 years of age, and those aged 19 and over who are in the first year of their apprenticeship.
For those with staff on furlough, the minimum wage does not apply for time actually spent on furlough, though it does apply to time spent either working or doing work-related training.
Find out more
For more help and advice for employers on employee pay, and any other employment advice, please visit our dedicated employment law pages or contact our employment team directly.