The national living and minimum wage is rising April 2021. With exciting developments for young workers, as the National Living Wage threshold has been dropped to 23 years old. After the research and analysis that the Low Pay Commission conducted in 2020, the increases are not as high as expected due to the economic climate. But, the new wage rates will be:
- NLW (Aged 23+): £8.91 – an increase of 2.2%
- 21-22: £8.36 – an increase of 2%
- 18-20: £6.56 – an increase of 1.7%
- Under 18: £4.62 – an increase of 1.5%
- Apprenticeship: £4.30 – an increase of 3.6%
The 2.2% increase for National Living Wage will be the equivalent to £345 extra per year to those working full-time.
This 2021 wage increase is another step in the Government’s plan to end low pay. However, the increases are smaller this year for workers aged under 23. This is due to the current economic situation causing some risks for youth employment.
Business Secretary Alok Sharma said:
“While this has been an extraordinarily difficult year for millions of people, this government remains absolutely committed to putting more money in the pockets of the UK’s lowest-paid workers.This measured rise strikes the right balance between supporting hard-working families through this tough time, while protecting firms as they recover from the impacts of COVID-19.”Quote taken from the .Gov website
As a recruitment agency, we have prepared our agency workforce for the National Wage increase and are ready to support employers with the transition. With our in-house payroll division, we handle the pay, holiday and necessary deduction. So we create a happier and more engaged workforce.