From 1 April 2021 the National Living Wage will increase from £8.72 to £8.91, an increase of 2.2%.
This rate will also be extended to 23 & 24 year olds for the first time and comes as the government accepted in full recommendations made by the Low Pay Commission.
The rates from 1 April 2021 are as follows:
| Rate from April 2020 | Rate from April 2021 | ||
| National Living Wage | £8.72 | £8.91 | |
| 21-22 Year Old Rate | £8.20 | £8.36 | |
| 18-20 Year Old Rate | £6.45 | £6.56 | |
| 16-17 Year Old Rate | £4.55 | £4.62 | |
| Apprentice Rate | £4.15 | £4.30 | |
| Accommodation Offset | £8.20 | £8.36 |
We will be in touch with clients closer to 1 April ‘21 to ensure the new rates are applied to payrolls.
In the meantime, if you have any queries about payroll, please contact Nicola Lee or call 01527 558539.