Change to the age eligibility for National Living Wage

On the 1st of April 2021, the national living wage (NLW) rate rises from £8.72 to £8.91 per hour.

In addition, the age of eligibility for the NLW is lowered from 25 to 23 years of age.

This means that the adult rate of the NMW will only be payable to those workers who are aged 21 and 22.
The rates are:

• The National Living Wage (NLW) will rise from £8.72 to £8.91.
• The adult rate of the NMW will rise from £8.20 to £8.36.
• The youth development rate will rise from £6.45 to £6.56.
• The young workers’ rate will rise from £4.55 to £4.62.
• The apprentice rate will rise from £4.15 to £4.30.

To work out when the rates kick in when an employee has a birthday, you pay the higher age-appropriate rate from the start of your next pay reference period on or after the worker’s birthday.

For monthly paid staff this rate change may therefore fall in the following month, rather than be effective from their actual birth date.

Should you accidentally miss an age-related increase, backdate the outstanding amount and pay it to the worker immediately to avoid grievances or claims.