Big Changes To The National Wages In April 2021

In his address to the House of Commons, Rishi Sunak revealed big changes that will be made to the National Minimum Wage and the National Living Wage.

The changes below will apply from April 2021.


National Living Wage Eligibility Changes

Currently those eligible for the National Living Wage are aged 25+.

However, from April 2021 this criteria will be brought down to anyone aged 23+.

The biggest change you need to be aware of is that those workers aged between 23 & 24 will be switching from receiving the National Minimum Wage, to receiving the National Living Wage in April 2021.


National Living Wage & National Minimum Wage Increasing

Along with the eligibility changing for 23 & 24 year olds, both the NLW & the NMW are also increasing in April 2021.

Here are the full wage increase coming into effect in April 2021:

 

Ages 23+ (previously 25+)

Are to be paid the National Living Wage. This will increase from £8.72 to £8.91. (2.2%)

Ages 21-22

Will receive the National Minimum Wage. This will increase from £8.20 to £8.36. (2%)


Ages 18-20

Will get the National Minimum Wage. This will increase from £6.45 to £6.56. (1.7%)


Under 18’s

Receive the National Minimum Wage. This will increase from £4.55 to £4.62. (1.5%)

 

Apprenticeships

The Apprenticeship Wage will also increase from £4.15 to £4.30. (3.6%)

 


Preparing For The Changes Now

It’s important to start preparing for these changes now, and begin budgeting for how this might impact your business.

As a business owner, you must pay your staff the correct wages listed above in April 2021. You can pay them more, but you cannot pay them any less.

If you believe you won’t be able to afford these costs, then you need to first think about ways you can reduce costs or reduce hours with a member of staff.

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