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2021 National Minimum Wage and National Living Wage Rates

The Government issued a press release on 25 November 2020 announcing the National Living Wage (NLW) and National Minimum Wage (NMW) rates which will come into force from 6 April 2021. In making the announcement, the Government accepted the recommendations made by the Low Pay Commission (LPC) at the end of October 2020.

The NLW currently only applies to workers aged 25 or over and it will increase by 2.2% on 6 April 2021.  In addition, and for the first time, it will be extended to 23 and 24 year olds. The reduction in the NLW age threshold follows a review of the structure of the NMW youth rates and recommendations made by the LPC in Autumn 2019.  The age threshold is due to reduce further and will include 21 year olds by 2024.

In light of the current economic situation, the LPC recommended smaller increases for younger workers in recognition of the risks to youth employment.  

The apprentice rate sees the greatest increase (up by 3.6%)  in furtherance of the LPC’s ultimate goal of fully aligning it with the rate for 16 to 17-year-olds by 2022.

The LPC’s recommendations comprised the following, which have been adopted:

 

Rate from April 2020

Rate from April 2021

Increase

National Living Wage

£8.72

£8.91

2.2%

21-22 Year Old Rate

£8.20

£8.36

2.0%

18-20 Year Old Rate

£6.45

£6.56

1.7%

16-17 Year Old Rate

£4.55

£4.62

1.5%

Apprentice Rate

£4.15

£4.30

3.6%

Accommodation Offset

£8.20

£8.36

2.0%

 

This bulletin is for general guidance only and should not be used for any other purpose. It does not constitute, and should not be relied upon as, legal advice.

JMW Solicitors is a Limited Liability Partnership.

The copyright in this article is owned by JMW. Any reproduction of this article should be credited to JMW. All rights reserved.