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The Independent Automotive Aftermarket Federation

The National Minimum Wage and National Living Wage rates increases

Date: Monday 08 March 2021

The National Minimum Wage and National Living Wage rates will increase on 1 April. In addition to the new rates, the age from which workers become eligible for the National Living Wage will be lowered. From 1 April all workers aged 23 and over must be paid the National Living Wage or above and employers should ensure they are ready to make the necessary changes to payroll arrangements.

HMRC is offering live webinars in March to explain the upcoming rate rises, including when exactly you should start paying the new rates.

National Minimum Wage and National Living Wage rates
The hourly rate for the minimum wage depends on your age and whether you’re an apprentice.

You must be at least:

From 1 April 2021 the National Living Wage will apply if you’re aged 23 and over.

Apprentices
Apprentices are entitled to the apprentice rate if they’re either:

Example
An apprentice aged 22 in the first year of their apprenticeship is entitled to a minimum hourly rate of £4.15.

Apprentices are entitled to the minimum wage for their age if they both:

Example
An apprentice aged 22 who has completed the first year of their apprenticeship is entitled to a minimum hourly rate of £8.20.

Rates from 1 April 2021
These rates are for the National Living Wage (for those aged 23 and over) and the National Minimum Wage (for those of at least school leaving age) from 1 April 2021.

Who gets the minimum wage
Read the information on who is entitled to the minimum wage.

You can use the minimum wage calculator to check whether the National Minimum Wage or National Living Wage is being paid.

Contact Acas if you’re not getting the National Minimum Wage and think you should be.