Changes to the National Living Wage rate and age for pay periods commencing from 1st April 2021, see a significant rise for some 23 and 24 year old employees.
For pay periods before the change, the National Living Wage (NLW) applied to those aged 25 and over. Some employers would have been paying NLW rates to workers of any age even if younger.
With the government announcement in 2020, the age for NLW qualifying is dropping to 23 years and above for pay periods commencing from 1st April 2021.
The current National Minimum Wage (NMW) rate for those aged 21 through 24 is £8.20. For those aged 22 and 22 this rate increases to £8.36.
The new National Living Wage (NLW) rate for those aged 23 years and over increases to £8.91.
This means that 23 and 24 year old employees see a minimum pay increase of +8.7%.
The National Living Wage for those aged 25 and over sees an increase of +2.2%, and those aged 21 and 22 of +2%.
The Apprentice rate increases by 3.6% to £4.30 per working hour. The lowest rises are for those aged up to 20 years old.
Living Wage Foundation
Those employers who are living wage employers and pay the ‘Real Living Wage’ have until 8th May 2021 until they must apply the uplifted rates announced on 9th November 2021. Of course, they may implement the rates before.
PAYadvice.UK 1/2/2021 updated 20/2/2021