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December 1, 2020

Legal Issues – Minimum Wage

While the focus over recent months has understandably been on Covid and the Job Retention Scheme, the Government has now announced the latest details of the annual increases in the various rates of the national minimum wage and national living wage. Details follow the recommendations made by the Low Pay Commission when they reported earlier in the year.

Well in advance of them coming into force on 6 April 2021, the headline change sees the level of the national living wage being increased to £8.91 per hour. Significantly, that rate now applies to those aged 23 and 24, having previously been restricted to those aged 25 or over.

Full details of the announcement and the new hourly rates are :

  • Age 23 or over (national living wage rate): £8.91 (up 2.2% from £8.72)
  • Age 21 to 22: £8.36 (up 2% from £8.20)
  • Age 18 to 20: £6.56 (up 1.7% from £6.45)
  • Age 16 to 17: £4.62 (up 1.5% from £4.55)
  • Apprentice rate: £4.30 (up 3.6% from £4.15)

If you have any questions on any of the issues mentioned in the above article, please contact Russell Eadie.

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EH3 8HA