National Minimum Wages Increases 2021
The National Minimum Wage changes will come into effect in April 2021. At present the National Living Wages is the minimum payment for employees aged 25 or over. However, in April 2021 this age will decrease to any employee who is aged 23 or over.
The minimum hourly pay rates from April 2021 onwards will increase as follows:
· 21-22 year old rates will increase from £8.20 to £8.36 per hour (increase of 2.0 per cent)
· 18-20 year old rates will increase from £6.45 to £6.56 per hour (increase of 1.7 per cent)
· 16-17 year old rates will increase from £4.55 to £4.62 per hour (increase of 1.5 per cent)
· Apprentice rates will increase from £4.15 to £4.30 per hour (increase of 3.6 per cent)
National living wage (aged 23 or over) rates will increase from £8.72 to £8.91 per hour (increase of 2.2 per cent)
Accommodation offset will increase from £8.20 to £8.36 per hour (increase of 2.0 per cent)
The National Living Wage and National Minimum Wage are statutory and differ to the Real Living Wage.
The Real Living Wage is a UK wage rate that is voluntarily paid by 7,000 UK businesses and is based on living costs.
In November last year, the Living Wage Foundation announced the rates for 2020/21, stating employers committed to the Real Living Wage should implement the rise as soon as possible and within six months.
It added that all employees should receive the new rate by May 2021.
Currently, the UK Real Living Wage is £9.50 per hour, while it is £10.85 in London, with both covering the age group of anyone who is 18 or older.
Other Statutory Payment Changes
The rate of Statutory Sick Pay will increase to £96.35 per week (from £95.85) from 6 April 2021.
Basic rate of Statutory Maternity Pay and Statutory Adoption Pay – will increase to £151.97 per week (from £151.20) (or 90% of the employee’s average weekly earnings if this figure is less than the statutory rate) from 4 April 2021.
Statutory Paternity Pay, Statutory Shared Parental Pay and Statutory Parental Bereavement Leave pay will increase to £151.97 per week (from £151.20) (or 90% of the employee’s average weekly earnings if this figure is less than the statutory rate) from 4 April 2021.