National living and minimum wage increases confirmed


26-11-2020

On 25 November 2020, the Chancellor confirmed as part of the Spending Review that the Government would be adopting the recommendations of the Low Pay Commission to increase the National Living Wage and National Minimum Wage with effect from April 2021.

In addition, the Government will also extend the National Living Wage so that it will apply to those 23 years of age or older (previously it applied to those 25 or older).

The new rates are set out below:

 

 

Rate from April 2021

Percentage Increase

National Living Wage

£8.91

2.2

21-22 Year Old Rate

£8.36

2.0

18-20 Year Old Rate

£6.56

1.7

16-17 Year Old Rate

£4.62

1.5

Apprentice Rate

£4.30

3.6

Accommodation Offset

£8.36

2.0

 

Alex Sims comments:

"Employers should review staff wages and ensure steps are taken to implement necessary increases in advance of April 2021. In particular, they should be mindful of those 23-24 years of age, who, where relevant, will see larger than usual increases on account of now qualifying for the National Living Wage. If you require assistance with implementing salary amendments then contact a member of the team here."

 

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