National Minimum Wage

5 November 2021

Increases to rates from 1 April 2022

The UK National Minimum Wage sets out the minimum hourly rates a worker can lawfully be paid. Increases to the National Minimum Wage rates have been set out in the Budget delivered by the Chancellor on 27 October 2021.

The following changes will take effect on 1 April 2022:

• National Living Wage for those aged over 23 will increase from £8.91 to £9.50 an hour.
• National Minimum Wage for those aged 21-22 will increase from £8.36 to £9.18 an hour.
• National Minimum Wage for 18 to 20-year-olds will increase from £6.56 to £6.83 an hour.
• National Minimum Wage for under-18s will increase from £4.62 to £4.81 an hour.
• The Apprentice Rate will increase from £4.30 to £4.81 an hour.

If an employer is found not to have paid the relevant National Minimum Wage rates HMRC will issue a notice of underpayment setting out the arears owed together with a fine to be paid to the Secretary of State within 28 days.

Employers who fail to pay can be named publicly and banned from being a company director for up to 15 years.

Therefore, employers should take note of the upcoming changes and plan ahead for the increases.

This update was written by Jo Sinclair, Solicitor at didlaw.

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