December 17, 2020

Government announces Minimum Wage Increase

The government announced that National Living Wage (NLW) and National Minimum Wage (NMW) increases will come into force from 1st April 2021.

Of particular note is that workers who are 23 or older will be entitled to receive the National Living Wage which will increase by 2.2% from £8.72 to £8.91 per hour as a minimum – previously the National Living Wage was for employees aged 25 and over.

The National Minimum Wage bandings have been amended in light of the fact that those aged 23 or older are now to be entitled to the National Living Wage and they will increase as follows:

•  For those aged 23 and over, from £8.72 to £8.91 per hour (National Living Wage)

•  For those aged 21 or 22, from £8.20 to £8.36 per hour (National Minimum Wage)

•  For those aged 18, 19 or 20, from £6.45 to £6.56 per hour (National Minimum Wage)

•  For those aged 16 or 17, from £4.55 to £4.62 per hour (National Minimum Wage)

•  For apprentices*, from £4.15 to £4.30 per hour (National Minimum Wage)

*Apprentices are entitled to receive the apprentice rate if they are either aged under 19 or aged 19 or over and in the first year of their apprenticeship.

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