From 1st April 2021, the National Living Wage will apply to workers aged 23 and over. Currently it is for workers aged 25 and over. Also the rates for the National Living Wage and National Minimum Wage rates will increase as follows:
- to £8.91 per hour (from £8.72) for workers aged 23 and over (+ 2.2%)
- to £8.36 per hour (from £8.20) for workers aged 21 to 22 (+ 2%)
- to £6.56 per hour (from from £6.45) for workers aged 18 to 20 (+ 1.7%)
- to £4.62 per hour (from £4.55) for workers aged 16 and 17 (+ 1.5%)
- to £4.30 per hour (from £4.15) for apprentices under 19 and those over 19 in their first year* (+ 3.6%)
*N.B. Apprentices over 19 and who have completed at least one year are entitled to the appropriate rate for their age.
The increases have been more modest this year, but the change in age bracket for the National Living Wage may have a significant impact on the wage bill for some organisations. A 23 year old who works 40 hours per week will now be entitled to an annual salary of just over £18,500, an increase of around £1,500 per annum.
If you have some staff on lower salaries, you will need to keep watch on the hours they work and check to ensure that you are complying with the minimum wage legislation, as penalties can be very severe for getting it wrong. |