MINIMUM WAGE - 09.11.2021

Annual increases to the national minimum wage

The government has now set out the increases to the hourly rates of the national living wage (NLW) and national minimum wage (NMW) from 1 April 2022. What’s to know?

Rate rises

From 1 April 2022: (1) the national living wage (NLW) rate for workers aged 23 and over will rise from £8.91 to £9.50 per hour; (2) the national minimum wage (NMW) rate for workers aged 21 and 22 will rise from £8.36 to £9.18 per hour; (3) the NMW rate for workers aged 18 to 20 will rise from £6.56 to £6.83 per hour; (4) the NMW rate for workers aged 16 and 17 will rise from £4.62 to £4.81 per hour; and (5) the NMW apprentice rate will rise from £4.30 to £4.81 per hour (see Follow up ). The accommodation offset will also rise from £8.36 to £8.70 per day.

Pro advice. The age threshold for the NLW is still due to be lowered to workers aged 21 and over by 2024.

Pro advice. If you employ staff who are paid at NLW/NMW levels, it’s good practice to advise them of the government’s annual increases (see Follow up ).

Apprentices

The apprentice minimum wage rate is to rise by an inflation-busting 11.9%. The reason for this is because the government has equalised this rate with the NMW rate for workers aged 16 and 17.

Government press release

Letter providing NMW statement

The NLW is to increase by 6.6% to £9.50 per hour from 1 April 2022. The other NMW rates will also see increases ranging from 4.1% to 11.9%.

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