Business News

Increase to Minimum Wage from April 2021

15/02/2021

Millions of UK workers are set to receive a pay rise from April 2021 as the Government announces increase in National Minimum Wage and National Living Wage.

Who gets the minimum wage?

Workers must be at least school leaving age to get the National Minimum Wage. They must be 25 or over to get the National Living Wage.

Contracts for payments below the minimum wage are not legally binding. The worker is still entitled to the National Minimum Wage or National Living Wage.

Workers are also entitled to the correct minimum wage if they’re:

• part-time
• casual labourers, for example someone hired for one day
• agency workers
• workers and homeworkers paid by the number of items they make
• apprentices
• trainees, workers on probation
• disabled workers
• agricultural workers
• foreign workers
• seafarers
• offshore workers

Apprentices

Apprentices are entitled to the apprentice rate if they’re either:

• under 19
• 19 or over and in the first year of their apprenticeship

Apprentices over 19 who have completed the first year of their apprenticeship are entitled to the correct minimum wage for their age.

The following types of workers are not entitled to the National Minimum Wage or National Living Wage:

• self-employed people running their own business
• company directors
• volunteers or voluntary workers
• workers on a government employment programme, such as the Work Programme
• members of the armed forces
• family members of the employer living in the employer’s home
• non-family members living in the employer’s home who share in the work and leisure activities, are treated as one of the family and are not charged for meals or accommodation, for example au pairs
• workers younger than school leaving age (usually 16)
• higher and further education students on work experience or a work placement up to one year
• people shadowing others at work
• workers on government pre-apprenticeships schemes
• people on the following European Union (EU) programmes: Leonardo da Vinci, Erasmus+, Comenius
• people working on a Jobcentre Plus Work trial for up to 6 weeks
• share fishermen
• prisoners
• people living and working in a religious community

New statutory pay rates published

The government has announced new statutory national minimum wage rates rom 6 April 2021. From this date, those aged 23 or over will become entitled to the statutory national living wage rate. 

The new rates will be as follows:

• Age 23 or over: £8.91 (currently £8.72)
• Age 21 to 22: £8.36 (currently £8.20)
• Age 18 to 20: £6.56 (currently £6.45)
• Age 16 to 17: £4.62 (currently £4.55)
• Apprentice rate: £4.30 (currently £4.15)

The government has also announced that from 6 April 2021 it is proposed that statutory sick pay will be £96.35 (currently £95.85) and from 4 April 2021 statutory family leave (maternity pay, paternity pay, shared parental pay, adoption pay and parental bereavement pay) will be £151.97 (currently £151.20).

You can use the minimum wage calculator to check whether the National Minimum Wage or National Living Wage is being paid.