The 1st of April 2021 will see a 2.2%% increase to the National Living Wage, lifting it from £8.71 per hour to £8.91 per hour. This increase will benefit around two million of the lowest-paid workers in the UK.
The National Living Wage is also increasing and will be extended to cover anyone aged 23 and over, this was previously 25 and over.
The table below details the changes by age.
|Age Range||Last Year||From April 2021|
|Apprentice Rate||£4.15||£4.30 (up 3.6%)|
|Age 16:17||£4.55||£4.62 (up 1.5%)|
|Age 18:20||£6.45||£6.56 (up 1.7%|
|Age 21:22||£8.20||£8.36 (up 2%)|
|Age 23 or over (NMW)||£8.72||£8.91 (up 2.2%)|
There are no changes to the way pensions are calculated, Employee or Employer contributions at present.
There are currently no changes to these rates.
Why is this important?
Increases in NLW and NMW are welcome news for low paid workers but there are cost implications for employers who will need to factor in the increased labour costs to their operating costs.
If you are unsure about how the changes will impact your business, contact our teams now at email@example.com