National minimum wage rates rise
The national living wage (NLW) will rise to £9.50 per hour for pay periods starting on and after 1.4.22 along with the other national minimum wage rates (see table). Since 6.4.21 the NLW rate has applied to workers aged 23 and over.
he national living wage (NLW) will rise to £9.50 per hour for pay periods starting on and after 1.4.22 along with the other national minimum wage rates (see table). Since 6.4.21 the NLW rate has applied to workers aged 23 and over.
The apprentice rate will rise significantly by 11.9% to £4.81 and will be aligned with the rate for employees aged 16 and 17. This will help employers who will not have to have a formal apprenticeship agreement in place for trainees under 18 to pay the correct amount of NMW.
Older apprentices do need a formal apprenticeship agreement. Keep a sharp eye on your employees' birthdays to ensure that any rise in the NMW rate is implemented for the pay period that begins after they move into a different age category.
You can claim a £3,000 incentive for each apprentice hired before midnight on 31.1.22.
Anyone employed through the Kickstart scheme must be paid the NMW relevant to their age. Employers must apply for funding to pay employees on the Kickstart scheme before 17.12.21 but the start date for new employees on the scheme has been extended to 31.3.22.
Hourly rate for pay periods starting from | NLW aged 23 + £/hr | age 21 & 22 £/hr | age 18 to 20 £/hr | age 16 &17 £/hr | Apprentice rate £/hr |
1.4.22 | 9.50 | 9.18 | 6.83 | 4.81 | 4.81 |
1.4.21 | 8.91 | 8.36 | 6.56 | 4.62 | 4.30 |