The new National Minimum Wage and National Living Wage rates came into effect on 1 April 2021. The new rate for the National Minimum Wage is £8.91 which is up 19p over last year. The National Living Wage is the minimum hourly rate that must be paid to those aged 23 or over. The National Living Wage used to apply only to those aged 25 and over but from 1 April 2021 has been extended to 23 and 24 year olds for the first time.

The threshold is expected to further reduce to 21 by 2024. The increase represents an additional £345 per year for someone working full-time and earning the NLW.

The hourly rate of the National Minimum Wage (for 21-22 year olds) increased to £8.36 (a rise of 16p). The rates for 18-20 year olds increased to £6.56 (a rise of 11p) and the rate for workers above the school leaving age but under 18 increased to £4.62 (a rise of 7p). The National Minimum Wage rate for apprentices increased by 15p to £4.30.

It is important that you ensure that you have adopted the new rates as there are significant penalties for employers who are found to have paid workers less that they are entitled to by law.