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Minimum Wage & National Living Wage rates to increase – some to get 9% pay rise next month

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Not only will rates rise across both the National Minimum Wage (NMW) and the National Living Wage (NLW) but a change to the threshold for the latter rate will come into force.

There’s also smaller increases to the minimum rates of pay ahead for those aged under 23.

This particular decision of smaller increases was recommended by Commissioners “in in recognition of the risks to youth employment which the current economic situation poses”.

Bryan Sanderson, Chair of the Low Pay Commission, said at the time: “Recommending minimum wage rates in the midst of an economic crisis coupled with a pandemic is a formidable task.

“The difficulty in looking forward even to next April is daunting.

“There are strong arguments concerning both low-paid workers – many performing critically important tasks – and the very real solvency risks to which small businesses are currently exposed.

“In these unprecedented conditions, stability and competence are prime requirements.

“Our value as a social partnership is to use the imperfect economic evidence to produce a recommendation which is professionally researched and dispassionate.

“Most importantly, after much debate it has the support of the business, trade union and academic representatives who make up the Commission.

However 23 and 24 year olds will end up getting a pay rise of 71 pence per hour next month.

For these workers, it works out at at a pay increase of 8.7 percent next month, Personnel Today reports.

Paul Holcroft, managing director at HR consultancy Croner, said: “The impact of this is that those aged between 23 and 25 currently on the minimum wage rate for 21 to 24 year-olds will see a pay rise of nearly nine percent, which employers will need to facilitate.”

The Low Pay Commission’s recommendations, which have been accepted, comprised:

National Living Wage

Rate from April 2020 – £8.72

Rate from April 2021 – £8.91

Increase – 2.2 percent

21-22 Year Old Rate

Rate from April 2020 – £8.20

Rate from April 2021 – £8.36

Increase – 2.0 percent

18-20 Year Old Rate

Rate from April 2020 – £6.45

Rate from April 2021 – £6.56

Increase – 1.7 percent

16-17 Year Old Rate

Rate from April 2020 – £4.55

Rate from April 2021 – £4.62

Increase – 1.5 percent

Apprentice Rate

Rate from April 2020 – £4.15

Rate from April 2021 – £4.30

Increase – 3.6 percent

Accommodation Offset

Rate from April 2020 – £8.20

Rate from April 2021 – £8.36

Increase – 2.0 percent.



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