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Changes to the National Minimum Wage in 2021

Changes to the National Minimum Wage in 2021

National minimum wage

The government has accepted the recommendations of the Low Pay Commission and announced the National Minimum Wage and National Living Wage rates which will come into force from April 2021.

Setting the minimum wage

Recognising the formidable task of recommending minimum wage rates in the middle of a global pandemic, the Low Pay Commission has sought to balance the needs of low paid workers – many of whom are doing critically important work – and the real solvency risks which small businesses are currently exposed to.

What’s the difference between minimum wage and living wage?

The different terms can be confusing. The National Minimum Wage is the minimum hourly pay that almost all workers are entitled to. The National Living Wage is higher and is currently paid to workers who are over 25. From April 2021, the government is extending the NLW to 23 and 24 year olds too.

What are the new Minimum Wage rates from April 2021?

The new rates from April will be:

  • NLW (age 23 and over) - £8.91
  • Age 21 and 22 - £8.36
  • Age 18 to 20 - £6.56
  • Age 16 and 17 - £4.62
  • Apprentice rate - £4.30

Find full details on the upcoming Minimum Wage changes here

Other Statutory Rate Changes in April 2021

  • The rates of Statutory Maternity Pay, Statutory Paternity Pay, Statutory Adoption Pay, Statutory Shared Parental Pay and Statutory Parental Bereavement Pay will increase from £151.20 to £151.97 per week
  • The rate of Maternity Allowance will increase from £151.20 to £151.97 per week
  • The rate of Statutory Sick Pay will increase from £95.85 to £96.35 per week (though watch this space for further announcements in the Budget potentially)

As and when other statutory rates are announced, we will update this accordingly.

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