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New National Minimum Wage effective from 1 April 2021

24 February 2021

ENSURE YOU ARE READY

Rises reflect the pandemic’s impact – new hourly rates for everyone.

The Government has accepted recommendations from the Low Pay Commission and announced that the National Minimum Wage (NMW) & National Living Wage rates will change from April 2021.

The Commission has sought to balance the needs of low paid workers (many of whom are key workers and delivering critical work) against the real risk of solvency for many small businesses.

All employers should ensure from 1 April 2021 that they are paying the new NMW rate to their employees/workers. Employees should check their pay received after 1 April and raise any shortfalls with their employers. Set out below are the old rates and the new rates. Beware the new age categories. The National Living Wage now applies to those 23 and over.

The old rates/categories – From 1 April 2020

  • Age 25+ = 8.72 p/h – the national living wage
  • 21-24 = 8.20 p/h
  • 18-20 = 6.45p/h
  • 16-17 = 4.55 p/h
  • Apprentices = 4.15 p/h

The new rates/categories – From 1 April 2021

  • Workers aged 23 and over: £8.91 an hour (National Living Wage)
  • Workers aged 21-22: £8.36 an hour
  • Development rate for workers aged 18-20: £6.56 an hour
  • Young workers rate for workers aged 16-17: £4.62 an hour
  • Apprentice rate: £4.30 an hour

You can find full details of the changes on the government website

Please note that any changes to rates of pay does not affect Furlough calculations and is only relevant when work is done, or training is undertaken.

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