The Government has approved the Low Pay Commission’s recommendations for the new National Minimum Wage to be increased 2.2% from £8.72 to £8.91. The new wage rates take effect on the 1st April 2021 and if you’re aged 23 years and over, you will soon be entitled to the National Living Wage of £8.91 per hour, the previous age threshold was 25 years and older.
By law, employers must pay the National Minimum Wage (NMW) as a minimum. The rate will be dependent on the age of the employee, or if they’re an apprentice.
- The apprentice rate applies to people who are under 19 years of age and those aged 19 or over when undertaking the first year of their apprenticeship
- An employee is entitled to National Minimum Wage if they are under or over the age of 23
As of 1st April 2021 the following rates will apply:
| Category of worker | Hourly rate |
| Aged 23 and above (national living wage rate) | £8.91 |
| Aged 21 to 22 inclusive | £8.36 |
| Aged 18 to 20 inclusive | £6.56 |
| Aged under 18 (but above compulsory school leaving age) | £4.62 |
| Apprentices aged under 19 | £4.30 |
| Apprentices aged 19 and over, but in the first year of their apprenticeship | £4.30 |
If you’d like to discuss new National Minimum Wage rates and they mean for your business, call An Accounting Gem today on 01473 744 700, send an email to contactus@accountinggem.co.uk, or visit our website at aag-accountants.co.uk. and we’ll be able to assist in any way that we can.
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