New Rates of National Minimum Wage

A brief reminder of forthcoming increases to the National Minimum Wage and other employment rates

From 1 April 2021, the National Minimum Wage increases as follows:

Rates	2020	2021
National Living Wage (now age 23+)	£8.72	£8.91
Adult rate (now age 21-22)	£8.20	£8.36
Development rate (age 18-20)	£6.45	£6.56
Young workers rate (age 16-17)	£4.55	£4.62
Apprentice rate	£4.15	£4.30

The adult rate previously applied to those aged 21-24, with the National Living Wage applying to those age 25 and over. From 1 April 2021 the adult rate only applies to those aged 21-22, with anyone age 23 and over receiving the National Living Wage.

The National Minimum Wage does not apply to furlough payments.

From 4 April 2021, the weekly rate of statutory maternity, paternity and adoption pay will increase to £151.97.

Finally, from 6 April 2021, the cap on one week’s pay for calculating statutory redundancy payments will increase from £538 to £544.

If you have any employment law related questions, please contact Trula Brunsdon on 01242250039 or at trula@sherborneslaw.co.uk.

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New Rates of National Minimum Wage