Changes to National Minimum Wage (NMW) rates

As of today, 1st April 2021 the new National Minimum Wage (NMW) and National Living Wage (NLW) rates apply.

 

Along with the increase in rates, the NLW age bracket has been reduced so now must be paid to employees over the age of 23 (previously over 25).

National Minimum Wage is paid to workers below the National Living Wage age bracket and is broken down into 3 bands. Those aged 16-17, 18-20 and now 21-22 (previously 21-24).
Once they worker reaches the age of 23 NLW applies.

 

There is also a different NMW rate for apprentices. This applies to apprentices under the age of 19 or those over 19 during the first year of their apprenticeship.

 

Please see the table below for applicable rates.

Age
Wage per hour
Apprentice (Under 19) £4.30
Apprentice (Over 19)
*First year only, must then move to appropriate wage based on age
£4.30
16 – 17 £4.62
18 – 20 £5.56
21 – 22 £8.36
23 + £8.91

 

Check you are paying the correct rates

As an employer you should ensure that the amounts that you pay workers from 1st April 2021 are in line with the new rates shown above.
It is still important to have a process in place to identify when a worker moves into a new age bracket and can adjust for those aged 23 and 24 who will be entitled to the NLW from today.

 

If you need any help with keeping up with the ever changing requirements on your payroll please contact our friendly and efficient team who would be happy to help. Call us now on  01482 888820.