MINIMUM WAGE CHANGES FROM 1 APRIL (this year and last)
This update covers changes to national minimum wage for pay periods starting on or after 1 April 2021, and belatedly reports on some general changes in April 2020. It follows on from update 2105, sent on 22 March, about the supreme court’s recent judgment on minimum wage for workers on sleep-in shifts. Note that there was an error in update 2104: In the final paragraph in the section headed “The court of appeal and supreme court decisions”, the date of the supreme court judgment should have been 19 March 2021, not 19 March 2019 – but it will have been obvious from the rest of the article that it was this year. Thanks to Hazel from Brighton & Hove Community Works for pointing this out.
For pay reference periods starting on or after 1 April 2021 there are as usual changes to rates for national minimum wage (NMW) and national living rage (NLW). Very importantly, the age for national living wage is lowered from 23 to 25.
For pay periods starting on or after 1 April, the hourly rates for NMW and NLW are:
• NLW for workers aged 23 and over: £8.91 (2.2% increase from £8.72).
• NMW for workers aged 21 to 22: £8.36 (2% increase from £8.20).
• NMW for workers aged 18 to 20: £6.56 (1.7% increase from £6.45).
• NMW for workers aged under 18 but above school leaving age and are not apprentices: £4.62 (1.5% increase from £4.55).
• NMW for apprentices aged under 19, or 19 or over and in the first year of their apprenticeship: £4.30 (3.6% increase from £4.15).
National living wage is a tier of the national minimum wage, so the terms minimum wage, national minimum wage and NMW generally refer to both minimum wage and living wage.
For pay periods starting on or after 1 April, the accommodation offset rate is £8.36 per day / £58.52 per week, a 1.9% increase from £8.20 per day / £57.40 per week. Unlike nearly all other employer benefits in kind such as food and car, accommodation provided by an employer, up to the accommodation offset rate, can be taken into account when calculating national minimum wage.
This information was kindly provided by Sandy Adirondack.
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This information provided here is for general information only. It is not a complete statement of the law and is in no way intended as a substitute for proper legal advice. It is intended only for charities and other voluntary/community organisations. For commercial bodies or public authorities, some aspects of law may apply differently, there may be additional legal requirements, or the law may not apply at all (for example, charity law does not apply to organisations which are not legally charities, except in a very few situations such as public collections).