National Living Wage and National Minimum Wage rates to increase from 1 April

The Government is pressing ahead with plans to increase the rates of the National Living Wage (NLW) and the National Minimum Wage (NMW) from 1 April 2021, while people aged 23 and 24 will be entitled to the National Living Wage for the first time.

The NLW will rise from £8.72 an hour to £8.91 an hour, the NMW for people aged over 21 will rise from £8.20 to £8.36, for those aged 18 to 20 it will increase from £6.45 to £6.56, while the under 18 rate will rise from £4.55 to £4.62. The rate for apprentices will rise from £4.15 to £4.30.

Employers who pay workers less than the minimum wage are required to pay back arrears to the worker and HM Revenue & Customs (HMRC) can also issue fines of up to 200 per cent of arrears (capped at £10,000 per worker).

HMRC also has the power to publicly name and shame the worst offenders as a deterrent to others.

If you would like advice on the new National Living Wage and National Minimum Wage rates, please contact our payroll team.

Posted in News.