Employment and Payroll
< 1 min read

Autumn Budget 2021 – National Living Wage increases

Suzanne Hollander

Autumn Budget 2021 – National Living Wage increases

The Chancellor of the Exchequer, Rishi Sunak confirmed that the government has accepted in full the proposals of the Low Pay Commission for increasing minimum wage rates from 1 April 2022. This puts the government back on track to reach their minimum wage target of two-thirds of median earnings by 2024.

The new National Living Wage (NLW) rate of £9.50 will come into effect on 1 April 2022 and represents an increase of 59p or 6.6%. The NLW is the minimum hourly rate that must be paid to those aged 23 or over. The threshold is expected to further reduce to 21 by 2024. The increase represents a pay rise of over £1,000 for someone working full-time and earning the NLW.

The hourly rate of the NMW (for 21-22 year olds) will increase to £9.18 (a rise of 82p or 9.8%). This increase narrows the gap with the NLW and leaving this age group on course to receive the full NLW by 2024.

The rates for 18-20 year olds will increase to £6.83 (a rise of 27p) and the rate for workers above the school leaving age but under 18 will increase to £4.81 (a rise of 19p). The NMW rate for apprentices will increase by 51p to £4.81.

Read our full budget breakdown covering every aspect of the Chancellor’s Announcement here

If the wage increases will cause your payroll to be a bit more tricky, why not let us take the hassle away from you. Speak to one of our dedicated Payroll specialists today. 

Source: HM Treasury Thu, 28 Oct 2021 00:00:00 +0100

Share:

Share on linkedin
Share on twitter
Share on facebook

Related articles

Subscribe to our newsletter and stay up-to-date.

Contact us today to see how we can help you.