National Minimum Wage increases from 1 April 2021

Following the recommendations made by the Low Pay Commission, new rates of the national minimum wage and national living wage came into force on 1 April 2021.

The Government has made a clear commitment to ensure that the national living wage will be set at two thirds of median earnings by 2024. As a step towards this, alongside the increased rate, the age of when the national living wage now applies has been reduced from age 25 to age 23 and over, with plans to reduce the age limit further by 2024 so that it applies from age 21 and over.

Previous rate     Rate from April 2021     Increase

National Living Wage     £8.72    £8.91    2.2%

21-22 Year Old Rate       £8.20    £8.36    2.0%

18-20 Year Old Rate       £6.45    £6.56    1.7%

16-17 Year Old Rate       £4.55    £4.62    1.5%

Apprentice Rate             £4.15    £4.30    3.6%

HMRC produced a helpful guide that also includes a checklist for employers containing the common reasons for minimum wage underpayments. You can find the guidance here: www.gov.uk/guidance/calculating-the-minimum-wage

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