New legal minimum wage comes into force from today, Government confirms

The new minimum rate of pay for workers in England comes into force today, 01 April 2021, it has been confirmed.

According to the Government, around two million of the UK’s lowest-paid workers will benefit from the rise in the National Living Wage (NLW) and National Minimum Wage (NMW).

Under the changes, the NLW will increase by 2.2 per cent to £8.91 – representing a rise of around £345 per year for someone working full-time.

For the first time, the NLW will also be extended to 23 and 24-year-olds, meaning even more workers will be entitled to a pay rise.

Commenting on the minimum wage, Business Secretary Kwasi Kwarteng said: “To support our next generation of workers, we’ve lowered the age threshold for the Living Wage to 23 – ensuring even more people have the security of a decent wage.

“This increase will help millions of families in every corner of the country, while supporting businesses as we prepare to safely reopen our economy and build back better from the pandemic.

“I’d urge all workers to check their pay packet to ensure they’re getting what they are entitled to, and remind employers of their duty to pay the correct wage.”

The full list of changes can be found below:

  • National Living Wage (23+) has increased by 2.2 per cent, from £8.72 to £8.91
  • National Minimum Wage (21-22) has increased by 2 per cent, from £8.20 to £8.36
  • National Minimum Wage (18-20) has increased by 1.7 per cent, from £6.45 to £6.56
  • National Minimum Wage (under 18) has increased by 1.5 per cent, from £4.55 to £4.62
  • Apprentice Rate has increased 3.6 per cent, from £4.15 to £4.30

For help and advice applying the new National Living Wage and National Minimum Wage, please get in touch with our expert payroll team today.

Posted in Blog, Business, Business Blog, Business News, Employment.