Last week saw another announcement that will be of concern to operators many of whom are struggling to survive in the current climate. The Government announced that the National Living Wage rate is to increase from April 2021. However, acknowledging the stress that businesses are under, the increase will be in line with inflation only and not the 5.6% originally proposed.  The Government believes that the living standards of low paid workers will be protected by the increase which at the same time should not impose a significant risk to the solvency of many small businesses.

What are the new rates?

The NLW will rise from £8.72 per hour to £8.91 per hour. An increase of 19p or 2.2%.

Who does the NLW apply to?

The NLW has also been extended.  At the moment it applies to anyone aged 25 or above.  From April anyone aged 23 or above will be entitled to receive the higher NLW rate.

What are the new NMW rates?

Age 2021 Hourly Rate 2020 Hourly Rate
21-22 £8.36 £8.20
18-20 £6.56 £6.45
16-17 £4.62 £4.55

When do the changes apply?

The new rates will apply from 1 April 2021.

For more information on the NLW or employment matters generally contact Christopher Sing

The content of this page is a summary of the law in force at the present time and is not exhaustive, nor does it contain definitive advice. Specialist legal advice should be sought in relation to any queries that may arise.