New rates of the National Living Wage (NLW) and National Minimum Wage (NMW) come into force on 1 April 2021. These increases mark the first step on the path to the Government’s target of an NLW set at two-thirds of median earnings by 2024. The new NLW and NMW rates are set out below.
|Previous rate||Rate from April 2021||Increase|
|National Living Wage||£8.72||£8.91||2.2%|
|21-22 Year Old Rate||£8.20||£8.36||2.0%|
|18-20 Year Old Rate||£6.45||£6.56||1.7%|
|16-17 Year Old Rate||£4.55||£4.62||1.5%|
It’s important to note that the NLW now applies to all workers aged 23 and over. The previous age of eligibility was 25, and it will come down again to 21 by 2024.