National Minimum Wage – NMW
From 1 April 2021 rates for the national minimum wage/national living wage will change.
National Living Wage
From April this will increase from £8.72 to £8.91 and will be extended to 23 and 24 year olds for the first time.
What is the rate of NMW?
- Workers aged 21 to 22 – £8.36 (previously £8.20)
- Workers aged 18 to 20 – £6.56 (previously £6.45)
- Young workers aged under 19, but above compulsory school age who are not apprentices – £4.62 (previously £4.55)
- Apprentice rate – £4.30 (previously £4.15) – Apprentices are entitled to the apprentice rate if they are either; aged under 19 or aged 19 or over and in the first year of their apprenticeship. After their first year they will be entitled to the national minimum wage for their age.
Who is covered by NMW?
NMW applies to all workers under 23, with certain exceptions such as:
- Those under the age of 16
- Those who are genuinely self employed
- Family members working in the family business
- People working and living as part of a family (e.g. au pairs)
- Voluntary workers
What do you need to do?
- Check the amount you pay your employees to see if it needs to be amended to comply with the changed rate for the national minimum wage
- Advise us of any changes you wish to make in time for your first payroll that the new rates will apply to
Furlough calculations will be worked out on the old rates (what you have been paying in 2020). Hours worked or holiday top-ups must be paid at the new rates.
If you have any questions, please call Marianne Price on 01803 296678 or email email@example.com