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National Living Wage & National Minimum Wage

National Living Wage & National Minimum Wage

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4 March 2021 Uncategorised

National Living & National Minimum Wage 2021

***NLW now applies to anyone over 23yrs old ***

The National living Wage (NLW) generally increases in April each year and this is no exception and the increase will take place on 01 April 2021. Aside from the increase, which is around 2.2%, the bigger change is that the NLW, the highest level, will apply to anyone aged 23 or over (it has previously been 25 or over) So it is 23 and 24yrs olds who will get the biggest jump in pay, from £8.20 to £8.91 per hour, an increase of 71p per hour

All employers must pay at least the NLW to all employees or workers who are 23 years old or over. There are separate rates (National Minimum Wage) for younger employees or workers.

The current National Living Wage is set at £8.72 per hour, this will increase in April 2021 to £8.91, all other increases are shown in the table below;

National Minimum Wage for 2019/20

Age Current April 2019
21-22 £8.20 £8.36
18-20 £6.45 £6.56
Under 18 £4.55 £4.62
Apprentices £4.15 £4.30

N.B the apprentice rate is for apprentices under 19 or in their first year of an apprenticeship, otherwise normal rates apply

More information on the National Living and National Minimum Wage 2020 can be found by clicking here 

It had previously been suggested that the NLW would be increased by 49p this year. However, this has not been the case and the increase is 19p, except, of course for this years biggest winners the 23 and 24yr olds who have the 71p increase.

You must make increases to the NLW and MLW from 01 April 2021, even though that is midweek.

If you have an queries about the NLW or the NMW, please call the experts at Premier Legal LLP at the Nottingham Head Office on 0115 856 1625

 

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