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April changes: rise in the National Living Wage and National Minimum Wage

The National Minimum Wage (NMW) and National Living Wage (NLW) will both rise on 1st April. Employers must therefore ensure that they remain compliant in terms of their employees and workers’ pay.

Currently, rates are to increase as follows:

NLW (aged 23 and over) -> from £8.91 to £9.50 (6.6% increase)

Aged 21-22 -> from £8.36 to £9.18 (9.8% increase)

Aged 18-20 -> from £6.56 to £6.83 (4.1% increase)

Aged 16-17 -> from £4.62 to £4.81 (4.1% increase)

Apprentice rate -> from £4.30 to £4.81 (11.9% increase)

In addition to a rise in the NMW and the NLW, April will also see the introduction of the Social Care Levy which will help fund the NHS, health and social care.

Given that there has not been sufficient time to process the Social Care Levy as a separate deduction, the government have decided to increase NI to compensate for this payment for this tax year only. A 1.25% increase to NI contributions to most employees, with the exception of employees under the age of 21 and Apprentices under the age of 25, will therefore be introduced.

 

Key points for employers

The rise in the NLW will also apply to lower-salaried employees who must earn a minimum of £19,760 for a 40 hour week from 1st April 2022.