Increases in the National Minimum Wage and National Living Wage from 1 April 2021
The National Minimum Wage (NMW) is the minimum pay per hour most employees under the age of 23 are entitled to by law.
The National Living Wage (NLW) is the minimum pay per hour most employees aged over 23 are entitled to by law. Note that from 1 April 2021 the National Living Wage will be extended to 23 and 24 year old’s for the first time. It previously only applied to employees aged 25 or over.
The New Rates from 1 April 2021 are:-
| 23 and over | 21 to 22 | 18 to 20 | Under 18 | *Apprentice |
| £8.91 | £8.36 | £6.56 | £4.62 | £4.30 |
The *Apprentice rate only applies to apprentices aged:
- under 19
- or 19 or over if they are in the first year of their apprenticeship
You should apply the new rate to the next pay period that begins on or after the date:
- of the rate increase
- an employee reaches a new age rate
You can find out more about the NMW and the NLW on the following links:-
http://www.acas.org.uk/index.aspx?articleid=1902
https://www.gov.uk/national-minimum-wage-rates
The information in this blog provides only an overview of HMRC guidance and legislation in force at the date of publication and no action should be taken without consulting the detailed HMRC guidance and legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this blog can be accepted by the firm.
