The higher national minimum wage rate applied only to those aged 25 or over however from 1st April 2021 the government announced that the higher rate will apply to all those aged 23 or over at £8.91 per hour. The annual increase in national minimum wage rates for all age groups are as shown below.
HOURLY RATES
The new hourly rates as recommended by the Low Pay Commission and accepted by the government are:
Age 25 or over: £ 8.91 (national living rate) which is up 2.2% from rate of £8.72
Age 23 or over (national living wage rate) of £ 8.91 (up 8.7% from of £8.20)
Age 21 to 22: £ 8.36 (up 2% from rate of £ 8.20)
Age 18 to 20: £ 6.56 (up 1.7% from rate of £ 6.45)
Age 16 to 17: £ 4.62 (up 1.5% from rate of £ 4.55)
Apprentice rate: £ 4.30 (up 3.6% from rate 4.15)
Accommodation offset rate that applies where an employee is given accommodation as part of their employment package increased to £8.36, a 2% increase from the rate of £8.20 (this offset is what an employer can deduct lawfully from employee pay).
PAY REFERENCE PERIOD
The higher rate of pay will apply from the next 'pay reference period' after the increase. This means some employee’s pay might not go up straight away. For example if employee is paid monthly on 15th April then old rate applies up to 15th April and then new rate is applied thereafter in next pay reference period for 16th April to 15th May.
Please note the above is different from the real Living Wage which is a voluntary hourly rate of pay recommended by the Living Wage Foundation that increased to £9.50 across the UK and £10.85 in London
The new rates for other statutory payments from April are:
The weekly rate of statutory sick pay will be £ 96.35 (up from £95.85).
The weekly rate of statutory maternity pay, maternity allowance, statutory paternity pay, statutory shared parental pay, statutory adoption pay and statutory parental bereavement pay will be £151.97 (up from £151.20).
For further guidance and support in managing pay and benefits please call the advice line on 01455 852028.
