Minimum wage pay rates are reviewed each year by the Low Pay Commission and increase on the 1st April each year. For all of you employees earning ‘minimum wage’ this is good news – your pay has to be increased in line with the April increase. For employers – you need to make sure you increase hourly pay rates to meet the new requirements.
So, how much is the increase?
The rates vary according to age or type of work.
If you are an apprentice, the hourly rate from April 2020 was £4.15. From 1st April 2021 the rate increases to £4.30.
If you’re between 16-17 years of age and not in an apprenticeship, your hourly rate increased from £4.55 at last year’s rate to £4.62 from April 2021.
For those aged between 18 and 20, the rate increased from £6.45 to £6.56 per hour.
As a worker aged between 21 and 22 you have an increase from £8.20 to £8.36 per hour.
In 2020 a rate was applied specifically for 21-24 year olds. But from April 2021 that is just applied to 21 and 22 year olds. If you are over 22 you qualify for the National Living Wage*. In 2020 this was £8.72 per hour and is now £8.91.
Accommodation provided by an employer can be taken into account when calculating national minimum or living wage. This is known as the accommodation offset, and the rate for this has increased from £8.20 to £8.36 per week.
If you’re unsure about whether you should be paid according to these rates, it may be that you are in a category of workers who don’t qualify for them. You can check this out here.
Full information on the report and recommendations are available on the Gov.uk website and Low Pay Commission. If you are employing someone on a minimum wage and want to ask how the entitlement is structured and calculated, then please get in touch.
*The National Living Wage first came into being in April 2016.
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