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New law: Living Wage and National Minimum Wage rates confirmed for April 2021

The government has confirmed new Living Wage and National Minimum Wage rates from 1 April 2021.

January 2021

This update was published in Legal Alert - January 2021

Legal Alert is a monthly checklist from Atom Content Marketing highlighting new and pending laws, regulations, codes of practice and rulings that could have an impact on your business.

The new living wage and national minimum wage rates for the various categories of worker are as follows:

  • The living wage rate for workers aged 23 or over increases to £8.91 per hour (previously £8.72). Note the important change in 2021, that the living wage is available to those aged 23 and over, rather than 25 and over.
  • The national minimum wage rate for workers aged 21 to 22 increases to £8.36 per hour (previously £8.20).
  • The rate for workers aged 18 to 20 increases to £6.56 per hour (previously £6.45).
  • The rate for workers who are under 18 but above the compulsory school age (and not apprentices) increases to £4.62 per hour (previously £4.55).
  • The apprentice rate for workers aged under 19 or in the first year of an apprenticeship increases from to £4.30 per hour (previously £4.15).
  • The accommodation offset (the maximum daily amount an employer can take into account when calculating whether NMW has been paid, where accommodation is provided to a worker) increases to £8.36 per day (previously £8.20).

Operative date

  • 1 April 2021

Recommendation

  • Employers should budget and prepare for the new rates, taking into account the new age bands, from 1 April 2021.

Disclaimer: This article from Atom Content Marketing is for general guidance only, for businesses in the United Kingdom governed by the laws of England. Atom Content Marketing, expert contributors and ICAEW (as distributor) disclaim all liability for any errors or omissions.

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