Wage Rises Set to Impose Additional Costs for Employers

Updated: Jan 19

Recently, the Government announced the National Living Wage and National Minimum Wage rate increases from April 2021.

Surprisingly, despite the tough economic year, the rates across all bands are set to increase as follows:


CategoryRate April 2020Rate April 2021IncreaseNational Living Wage £8.72 £8.912.2% 21-22 Year Old Rate£8.20 £8.362.0% 18-20 Year Old Rate£6.45 £6.561.7%1 6-17 Year Old Rate£4.55 £4.621.5% Apprentice Rate£4.15 £4.303.6% Accommodation Offset£8.20£8.362.0%

Additionally, the National Living Wage, which is currently enjoyed by those over the age of 25, will, from April 2021 include 23 and 24 year olds, making an increase of 0.71p per hour, which equates to a 7.9% increase across this bracket.

The Low Pay Commission have been reported to have recommended that the rate increases will not impact on job security or the loss of jobs even with the uncertain economic times that employers are currently facing.


NucleusHR have been working on redundancy exercises throughout the year to support our clients and we believe that those employers that were trying hard not to make redundancies throughout the Pandemic or restricted the number of redundancies in hope that the knock on effect of the Pandemic would ease, may well be forced to re-evaluate their budgets in light of the above, which is likely to result in further job losses.


If you require any support or assistance throughout this period, as always, please do call NucleusHR on 07960 418494 or email toni@nucleushr.com.

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