National Minimum Wages Rates April 2021

The government has announced the annual increases in national minimum wage rates to apply from 6 April 2021, taking the minimum salary of those aged 23 or over to £8.91 per hour.

National Minimum Wages Rates April 2021

From 6 April 2021, the new hourly rates recommended by the Low Pay Commission and accepted by the government will be:

  • Age 23 or over (national living wage rate): £8.91 (up 2.2% from £8.72)
  • Age 21 to 22: £8.36 (up 2% from £8.20)
  • Age 18 to 20: £6.56 (up 1.7% from £6.45)
  • Age 16 to 17: £4.62 (up 1.5% from £4.55)
  • Apprentice rate: £4.30 (up 3.6% from £4.15)

Previously, the national living wage rate has applied only to those aged 25 or over. Where an employee is given accommodation as part of their package, the offset which can be deducted from their pay will increase to £8.36 per week (up 2% from £8.20).

Top Tip

The reduction of the threshold for the highest rate from 25 to 23 will mean a large number of employees will attract a higher than expected jump in their hourly rate.

I recommend reviewing staff wages now and look carefully for those employees who will fall into the 23-24 age bracket by April 2021. The increase from £8.20 to £8.91 per hour will have a significant impact on your wage bill.

If you have any questions please call me on 0114 360 0626 or simply email me at enquiries@kea-hr.co.uk.

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National Minimum Wages Rates April 2021