The National Minimum Wage (NMW) and National Living Wage (NLW) will increase in April 2021. The increase applies to pay reference periods beginning on or after 1 April 2021.
As an employer you will need to ensure you are paying your staff correctly from 1 April 2021 as HMRC has a policy on enforcement, prosecution and naming employers who break NMW / NLW law.
The revised rates as from 1 April 2021 are:
*This rate is for apprentices aged under 19 or 19 and over who are in their first year of apprenticeship.
All other apprentices are entitled to the National Minimum/Living Wage for their age.
Furlough;
As at 5th March 2021, furloughed employees will have their furlough pay, and therefore recovery, calculated on 80% of the NMW/NLW due on their qualifying pay associated with the first time they appeared on an RTI submission, being;
• Up to and including 19th March 2020 – 2019/20 NMW/NLW rates
• Between 20th March 2020 to 30th October 2020 – 2020/21 NMW/NLW rates
• By 2nd March 2021 – 2020/21 NMW/NLW rates
If you are an RL client, RL Payroll will increase where instructed, your employee’s salaries / hourly rates to the appropriate rate.
Please contact your payroller if you have any queries: payrollteam@robson-laidler.co.uk
This article is for general information only and does not constitute advice. Please do not take or refrain from action based on its contents. Information is based on our understanding of legislation at the date of publish and may change in future.