The Government have announced the following changes to the National Minimum/Living Wage rates.
The National Living Wage (NLW) rate for workers aged 25 and over currently stands at £8.72 an hour and in April 2021 will increase to £8.91, an increase of 2.2%.
The eligible age limit for the National Living Wage will also be lowered from 25 to 23 and over from April 2021. This means that for 23 and 24 year olds, in April 2021 their NMW/NLW pay rate will increase from £8.20 to £8.91.
The National Minimum Wage rates will also increase as follows:
|Age||2020 rate||2021 rate||% Increase|
|21 to 22-year olds||£8.20||£8.36||2|
The daily accommodation offset rate will also increase by 2.0 per cent from £8.20 to £8.36.
If you have any questions about how the increases to National Minimum Wage and National Living Wage may affect you, please get in touch with a member of our Employment Tax team.