By James Morris on 17/03/2021 12:00:00

Minimum Wage

New NMW and NLW Rates from 1/4/21

The National Minimum Wage (NMW) and National Living Wage (NLW) applies to nearly all workers and sets hourly rates of pay below which pay must not be allowed to fall.

The new NMW and NLW rates that come into effect on 1st April 2021 are as follows:

Commencing 1st April 2021:

  • Workers aged 23 years and over:                £8.91 p/h*
  • Workers aged 21 - 22 years inclusive:          £8.36 p/h
  • Workers aged 18 - 20 years inclusive:          £6.56 p/h

Workers aged under 18 but above compulsory.

  • School leaving age (usually 16 years old):    £4.62 p/h
  • Apprentices Minimum Wages                       £4.30 p/h

(for apprentices under 19 years of age, or 19 and over in the first year of their apprenticeship)

*National Living Wage

 

AUTOMATIC ENROLMENT PENSION CONTRIBUTION RATES AND EARNING TRIGGER

The pension contribution rate increases to an overall minimum of 5% with effect from 6th April 2021, therefore both employee and employer minimum rates are increasing to:

  • Earnings Trigger for AE:    £10,000.00
  • Employer Contributions:   3% of qualifying earnings
  • Employee Contributions:   5% of qualifying earnings (inclusive of tax relief)
  • Qualifying Earnings (Lower Limit)          £6,240.00
  • Qualifying Earnings (Upper Limit)          £50,270.00

Please notify your employees of their new contribution rate accordingly

By James Morris on 17/03/2021 12:00:00