National Minimum Wage
As of April 2021, the National Living Wage (NLW) and the National Minimum Wage (NMW) have been increased. All workers, except those who are genuinely self-employed, are entitled to receive the NLW or the NMW, as appropriate to their age or circumstances.
The NLW now applies to workers of 23 years and above (previously it was for those aged 25 and above). The new rate is £8.91 per hour, an increase from £8.72 in 2020.
The NMW has four rates depending on the age or category of your workers:
- 21 – 22 years (previously 21-24 years) -£8.36 per hour (increase from £8.20 in 2020)
- 18 – 20 years – £6.56 per hour (increase from £6.45 in 2020)
- under 18 years – £4.62 per hour (increase from £4.55 in 2020)
- apprentice rate – £4.30 per hour (increase from £4.15 in 2020)
Pension auto enrolment
Employers must enrol all eligible employees into a pension scheme and contribute towards it. Full details of this can be found on the Pension Regulator’s website.
From 6th April 2019 the contribution rates for employers and employees have been:
- Employer minimum contribution – 3%
- Employee minimum contribution – 5%
- Total contribution – 8%
If you are unsure about your responsibilities as an employer, get in touch with us to talk it through.
This information has been provided by solicitors working for Edward Connor Solicitors. It is designed for the purpose of knowledge sharing only and does not constitute legal advice.