- 19th March 2021
- Posted by: CILNI
- Category: General News
The table below shows the new National Minimum/ Living wages for the new 2021 tax year.
The National Minimum Wage and the National Living wages is the amount of money that you must by law pay an employee per hour.
|Wage Bands||New rate (from 1 April 2021)||Current rate (from 1 April 2020)||
|Age 25 and over (National Living Wage)||£8.91||£8.72||£0.19|
|Age 21 to 24||£8.36||£8.20||£0.16|
|Age 18 to 20||£6.56||£6.45||£0.11|
If you pay employees more than the new national minimum wage or national living wage:
If, as an employer in receipt of Direct payment, you currently pay your staff more than the rates listed above, then the increase in the NMW and the NLW will have no impact on you or on your budget. The CILNI payroll department will continue to pay wages at your current hourly rate.
I Currently Pay My Staff the Current National Minimum Wage or National Living Wage Rates. What Will Happen and How Will This Impact On Me?
If you are an employer in receipt of Direct Payment and you currently pay staff at the current NMW or NLW then this increase in pay rate will effectively mean that your staff will get a pay rise. You cannot pay less than the rates shown.
The CILNI payroll department will be monitoring the pay rates for each employee as they process individual payrolls and the increase will automatically be applied.
We understand that some employers pay staff at the NMW or NLW rates so that they can enable their budget to work to meet individual needs and that the margins on these budgets can be tight in terms of a pay increase.
In these instances, we would urge employers to contact us either by phone or e-mail so that we can arrange for someone to have a look at your budget for you.
As an employer, it is your responsibility to pay staff in accordance with the UK Government Legislation while also remaining within budget to avoid any overspend.
If you have any queries, please contact one of our staff who will be happy to help.