NATIONAL MINIMUM WAGE AND NATIONAL LIVING WAGE 2021

NATIONAL MINIMUM WAGE AND NATIONAL LIVING WAGE 2021

Millions of UK workers will receive an increase in pay from April 2021 following rise in the National Minimum Wage and National Living Wage.

  • Around 2 million of the UK’s lowest-paid workers expected to benefit from increase in National Minimum Wage and National Living Wage
  • for the first time, the National Living Wage will apply to 23 and 24 year olds
  • measured increases will support Britain’s workforce, while recognising the impact the COVID-19 pandemic has had on business

The Government accepted in full recommendations made by the Low Pay Commission at the end of October.

The National Living Wage will increase by 2.2 per cent from £8.72 to £8.91, and will be extended to 23 and 24 year olds for the first time. For workers aged under 23, Commissioners recommended smaller increases in recognition of the risks to youth employment which the current economic situation poses.

The LPC’s recommendations comprised:

Rate from April 2020 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%
Accommodation Offset £8.20 £8.36 2.0%

Note: The 23-24 age category for the National Minimum Wage has been abolished, following the lowering of the age of the eligibility for the National Living Wage to 23 years old.

It is against the law for employers to pay workers less than the NMW or NLW, or to falsify payment records.

Masstemps Ltd have stringent checks in place to ensure that workers are paid at least NMW and NLW. Can your current labour provider promise the same?

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