The National Minimum Wage rates that apply from 1 April 2021 are below (previous year’s rates shown in brackets).
- Aged 23 and over: £8.91 (up from £8.72)
- Aged 21 to 22: £8.36 (up from £8.20)
- Aged 18 to 20: £6.56 (up from £6.45)
- Under 18*: £4.62 (up from £4.55)
- Apprentice**: £4.30 (up from £4.15)
*You must be above the compulsory school leaving age for this to apply.
**The apprentice rate is for apprentices aged 16 to 18, and apprentices aged 19 or over who are in the first year of their apprenticeship. All other apprentices are entitled to the National Minimum Wage for their age.
The minimum wage increases do not apply to employees while they are furloughed due to Coronavirus. Please contact us for more information on what to pay furloughed employees.
Internships and work experience
The rules regarding the minimum wage for interns and people on work experience vary depending on the situation. If you’re thinking of employing someone on this basis, it’s best to check out HMRC’s guide on the minimum wage for work experience and internships.
What are the minimum pension contribution rates?
The minimum pension contribution rates are still 3% of qualifying earnings for the employer and 5% for the employee.
Qualifying earnings are an employee’s gross pay between £120 per week and £967 per week if they’re paid weekly. For an employee who’s paid monthly, it’s their gross monthly pay between £520 and £4,189.
An employee earns £300 per week (gross).
Her qualifying earnings are £180 (£300 – £120).
Min contribution from the employee: £9 per week (5% of £180).
Min contribution from the employer: £5.40 per week (3% of £180).
Total minimum pension contribution: £14.40 per week (£9 + £5.40).
NB The new tax year starts on 6 April, but if you pay your employees monthly you should use the new pension rates for the whole month of April.
See our blog on pensions to find out everything you need to know about enrolling employees into a workplace pension scheme.
If you have any questions about pension rates or the minimum wage, you know where to find us!