New Minimum Wage Increase effective from April 2021

A new minimum wage increase will be effective from April 2021, with those aged 23 and over earning £8.91 per hour. The increase this year will take the minimum wage/salary of those aged 23 or over to £8.91 per hour.

The UK Government accepted the Low Pay Commission’s recommended new hourly rate.  Therefore form 1 April 2021 the following rates will apply:

• Age 23 or over (national living wage rate): £8.91; up 2.2% from £8.72
• Age 21 to 22: £8.36; up 2% from £8.20
• Age 18 to 20: £6.56; up 1.7% from £6.45
• Age 16 to 17: £4.62; up 1.5% from £4.55
• Apprentice rate: £4.30; up 3.6% from £4.15

Where an employee is given accommodation as part of their overall package, the offset which can be deducted from their pay will be increased to £ 8.36 per week.  This is up 2% from £8.20.