The National Minimum Wage Legislation April 2021

A reminder that from 1 April 2021 the National Minimum Wage rates increased. The table below shows these new rates together with details of the increases that have been applied. The table reflects the fact that the National Living Wage will apply to those 23 and over from 2021 but applied to those 25 and over from 2020:

*For apprentices aged 16 to 18 and those aged 19 or over who are in their first year. All other apprentices are entitled to the rate applicable for their age.

The voluntary Real Living Wage increased to £9.50 across the UK and £10.85 in London, but only a small minority of employers have signed up to pay it.

Further, the Accommodation Offset daily rate increased by 16p (2%) from £8.20 to £8.36.

Please do note that the legislative requirement to pay at the National Minimum / Living Wage applies from the first full pay reference period that starts on or after 1 April 2021.

How does the National Minimum Wage increase affect my furlough claim?

Furloughed workers are predominantly receiving pay for hours not worked, which is not subject to National Minimum Wage legislation. NMW must be paid for all hours worked.