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Preparing for the National Minimum Wage increases

Preparing for the National Minimum Wage increases
Richard Hiron Mar 18,2021
blog post

It is usual each year to anticipate the changes being made to the National Minimum Wage that are brought in from 1 April.

However, now that the dust has settled from the announcement of the Budget, it is important for employers to consider the changes being made this year and, vitally, how key changes are being brought in to allow the changes in the National Minimum Wage to benefit younger workers sooner.

From 1 April 2021, the National Minimum Wage will look as follows:-

National Minimum Wage from 1 April 2021

Age (or status)

Hourly rate of pay

23 and over

8.91

21 to 22

8.36

18 to 20

6.56

Under 18

4.62

Apprentice

4.30


Comparing these with the current rates, the changes to ensure that workers are being paid more from a lower age (particularly from the age of 23) become clearer:-

Current National Minimum Wage rates (2020-2021 tax year)

Age (or status)

Hourly rate of pay

25 and over

8.72

21 to 24

8.20

18 to 20

6.45

Under 18

4.55

Apprentice

4.15