National Minimum Wage and National Living Wage – pay reference periods commencing Thursday 1st April 2021

The National Minimum Wage and National Living Wage uplift for 2021/2022 applies for pay periods starting 1st April 2021.

Along with the increase to minimum pay rates there are two significant additional changes:

  • The dropping of the National Living Wage qualifying age from 25 to 23 years
  • The extension of record keeping from 3 years to 6 years.

So when do the new rates apply from?

Employers may apply the rates earlier than the legal commencement.

The rates uplift in relation to the start date of the pay period. So for any pay period starting on or after 1st April, the new rules apply.

So if I work on 1st April, will the new minimum rate apply?

Not necessarily as the rate change is aligned with the start of your pay period and not for the days following. So you may only receive the new rate at the start of the next pay period. Of course, some employers may pay it from the 1st regardless although legally they don’t have to.

PAYadvice.UK 27/3/2021

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