Updates to the National Minimum Wage and National Living Wage Rates for 2021
Rate Changes
On Thursday 1st April, the government will enact their increases to the national Minimum Wage and National Living Wage rates. This includes changes to the age ranges for some of the rates. Make sure that your business is not caught out by these changes.
The rates are as follows:
| Year | 23 and over | 21 to 22 | 18 to 20 | Under 18 | Apprentice |
| April 2021 | £8.91 | £8.36 | £6.56 | £4.62 | £4.30 |
Details for Apprentices
The apprentice rate applies for a certain set of conditions.
Apprentices who are on a recognised apprenticeship program are entitled to the apprenticeship rate if they are either:
- Under 19, OR
- Over 19 and in the first year of their apprenticeship
They are entitled to the Apprentice rate of £4.30 per hour in April 2021.
Apprentices who are aged 19 or over and who have completed the first year of their apprenticeship are entitled to the NMW for their age group.
The new rates apply from the start of the next pay reference period after the increase.
Example
An employee gets paid on the 25th of every month for the period ending on the 15th of that month, i.e. the pay they receive on the 25th of April relates to the period from the 16th of March to the 15th of April. None of this employee’s wages paid on the 25th of April need to be paid at the new rates. The new rates will apply to the employee’s hours worked from the 16th of April onwards.
More information can be found here.
If you feel you may be affected by these important changes in this complex area please email our payroll team at: payroll@mitchellsaccountants.co.uk or call Mitchells on 01246 274 121