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National Minimum Wage rise from April 2021


National Minimum Wages rates

National Living Wage (NLW) rates (for those over 23 years old) and National Minimum Wage (NMW) rates (for those under 23 years old) will rise from 1 April 2021.


The NLW increase of 19p represents a 2% rise, equivalent to an annual increase of around £350 for a full-time worker.


In summary and effective 1 April 2021 the follow minimum wage rates will apply:




Plan ahead

Ensure your payroll procedures are up to date and consider notifying staff ahead of time in writing (even via a note on their payslip). This transparency is likely to be well received and could help build positive employee relations. It also offers an opportunity to explain that any overtime worked during a pay reference period prior to the introduction of the new rates, that is payable after these have been introduced, will still be paid at the previous rate. For further details and more rates visit gov.uk


Pension contribution rates

If you employ staff and run a pension scheme the minimum contributions rates remain the same with no more planned increases:

  • Employer minimum pension contribution 3%, staff contribution 5%.

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

  • aged under 19

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

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