As of the 1st April 2021 the national minimum wage increases, HR professionals should make sure that workers are being paid at least the national minimum wage that applies to them.
The national living wage (the highest band of the national minimum wage) increases to £8.91 per hour on 1 April 2021.
In addition, the age threshold for the national living wage is amended so that it applies to 23- and 24-year-old workers from 1 April 2021. Previously, the national living wage was available only to those aged 25 and over.
Other national minimum wage rates also increase on 1 April 2021, with hourly rates rising to £8.36 for workers aged 21 and 22, to £6.56 for workers aged 18 to 20 and to £4.62 for workers aged 16 and 17.
Statutory Increases that effect your people effective from 1st April 2021
| National Minimum Wage | |
|---|---|
| 23 and above | £8.91 |
| 21 – 22 inclusive | £8.36 |
| 18 – 20 inclusive | £6.56 |
| Under 18 but above compulsory school leaving age | £4.62 |
| Apprentices aged under 19 | £4.30 |
| Apprentices aged 19 and over but in the first year of their apprenticeship | £4.30 |
Statutory increases that effect your people effective from 4th April 2022
| Statutory Maternity, Paternity, Adoption, Shared Parental and Parental Bereavement Pay | |
|---|---|
| SMP – Weekly Rate for first 6 weeks | 90% of the employee’s average weekly earnings |
| SMP – Weekly rate for remaining weeks | £151.97 or 90% of the employee’s average weekly earnings, whichever is lower |
| Statutory Paternity Pay (SPP) – Weekly rate | £151.97 or 90% of the employee’s average weekly earnings, which ever is lower |
| Statutory Adoption Pay (SAP) – Weekly rate for first 6 weeks | 90% of employee’s average weekly earnings |
| SAP – Weekly rate for remaining weeks | £151.97 or 90% of the employee’s average weekly earnings, whichever is lower |
| Statutory Shared Parental Pay (ShPP) – Weekly rate | £151.97 or 90% of the employee’s average weekly earnings, whichever is lower |
| Statutory Parental Bereavement Pay (SPBP) – Weekly rate | £151.97 or 90% of the employee’s average weekly earnings, whichever is lower |
What can you recover from HMRC as an employer
| SMP,SPP, ShPP, SAP or SPBP – proportion of your payments you can recover from HMRC | 92% if your total class 1 National Insurance (both employee and employer contributions) is above £45,000 for the previous tax year. 103% if your total Class 1 National Insurance for the previous tax year is £45,000 or lower. |
