National Minimum and Living wages increases

UK workers are set to benefit from rises in the National Minimum Wage (NMW) and the National Living Wage (NLW) rates that took effect from 1 April 2021.

UK workers are set to benefit from rises in the National Minimum Wage (NMW) and the National Living Wage (NLW) rates that took effect from 1 April 2021.

The NMW which applies to 21 and 22 year-olds has risen from £8.20 to £8.36 and the NLW has risen from £8.72 to £8.91. 23 and 24-year-olds are now eligible for the NLW, prior to 1 April 2021, only workers aged 25 and over were eligible.

The rates for NMW and NLW for all employees are as follows:

  Previous rate (£) 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

The change follows recommendations made to the government by the Low Pay Commission (LPC) and marks the first step towards the government's target of the NLW reaching two-thirds of median earnings for workers aged 21 and over by 2024.

Commenting on the wage increases, Bryan Sanderson, Chair of the LPC, said:

'This week's increase in the NLW is our first step towards the government's target of two-thirds of median earnings. It is a real-terms increase, meaning that an hour's work can buy more than it could last year at the start of the pandemic.

'Young people should be fairly rewarded for their work. We will seek to understand how young people's pay and employment are affected by this in our consideration of a further reduction in the NLW age qualification to 21.'

The LPC will make recommendations to the government on the 2022 NMW and NLW rates in October.

Internet link: GOV.UK news

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