National Minimum Wage Changes 2021



Anyone in business knows that there are certain times of the year which are especially important. The start of a new financial year is certainly one and can see the Government bring in changes to various regulations. 2021 is no different and sees new changes to minimum wage come into effect for UK businesses.


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But what are the key points you should know about in advance?


What Date Does National Minimum Wage Change?


The main headline is that new criteria for National Minimum Wage will come into effect as of 1st April 2021. The new criteria see everyone aged over 23 eligible for minimum wage, rather than over 25 as before. It also sees a 2.2% rise in the National Minimum Wage level. This means that those eligible will go from earning £8.72 per hour to £8.91 per hour.

The new financial year will also see changes to the National Living Wage rates workers under 23 will receive. 18 to 20-year-olds, for example, will jump from getting £6.45 per hour to £6.56. For 21 and 22-year-olds, a 2% increase has been agreed. This will see their hourly rate go from £8.20 to £8.36. Non-apprentice 16 and 17-year-olds are also in line for an increase, with their hourly rate going up to £4.62 per hour. With apprentice pay also set to leap to £4.30 per hour, the new financial year is set to bring increased costs to many UK businesses.


Why Is It Key To Plan For This Change?


Although you might know more about these changes now, you might wonder why you should take the time to plan for them. The simple fact is that preparation is crucial in business and you do not want to be caught out by how the new minimum and living wage regulations impact your bottom line. If you do not have the right level of planning in place now, these regulatory changes could have a negative effect on your whole operation.


Contact eSlip Payroll For Help With Minimum Wage UK Changes


As the above shows, there are some pretty big changes coming up to not only the National Minimum Wage but also National Living Wage pay rates in the next financial year. If you need any more details on what is involved or help in planning for the impact they could have on your payroll, contact us today at


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