The National Minimum Wage has seen its annual increase, so what do you need to pay your juniors from April 2021?
It’s that time of year again! Every April we see the National Minimum Wage increase and this year is no exception.
For small business owners, staying on top of the National Minimum Wage increases every year can be tricky. But it’s important to keep your eyes on the employment news because you could be named and shamed.
That’s right, the government’s name and shame scheme is still up and running. So if you want to treat your employees well, be recognised as a fair employer and stay in the government’s good books here is everything you need to know.
It’s always a good idea to consult the government’s website to ensure that you’re paying the right rate!
The National Living Wage extension
Great news for younger workers, the highest NMW band has been extended!
The National Living Wage used to be reserved for people aged 25 and over. It now applies to all workers aged 23 and over.
- The National Living Wage has also increased from £8.72 to £8.91
£8.91 an hour for 37.5 hours a week is an annual salary of £17,374.50
What has the National Minimum Wage increased to?
- For employees aged 21-22 the rate has increased from £8.20 to £8.36
- At 37.5 hours a week that’s an annual salary of £16,302
- For employees aged 18-20 the rate has increased from £6.45 to £6.56
- At 37.5 hours a week that’s an annual salary of £12,792
- For employees aged 16-18 the rate has increased from £4.55 to £4.62
- At 37.5 hours a week that’s an annual salary of £9,009
- And for apprentices the rate has increased from £4.15 to £4.30
- At 37.5 hours a week that’s an annual salary of £8,385
The Real Living Wage
If you can afford to we would really recommend going the extra mile and paying your juniors the Real Living Wage instead.
The Real Living Wage is less about age and more about the cost of living for juniors. There are also only two rates that you need to know about.
- The UK Real Living Wage rate is £9.50
- At 37.5 hours a week that’s a salary of £18,525
- And the London Real Living Wage rate is £10.85
- At 37.5 hours a week that’s a salary of £21,157.50
This is a fair amount more than the NMW but it’s been calculated to ensure that your employees can survive and live happily on their wages.
And if you need any further advice or support reach out to us through our hiring platform or on 020 3917 0790.