{"id":2105,"date":"2022-01-25T04:57:08","date_gmt":"2022-01-25T04:57:08","guid":{"rendered":"https:\/\/uk.legalvision.com.au\/?p=2105"},"modified":"2024-05-16T06:46:39","modified_gmt":"2024-05-16T05:46:39","slug":"minimum-wage-increase","status":"publish","type":"post","link":"https:\/\/legalvision.co.uk\/employment\/minimum-wage-increase\/","title":{"rendered":"When Does the National Minimum Wage Increase in England and Wales?"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">It is a legal requirement to pay your workers the National Minimum Wage where they qualify for it. The National Minimum Wage is the statutory amount you must pay your workers and is set yearly by the Government. As the National Minimum Wage is subject to change annually, you must ensure that you are aware of the changes and comply with them. Not only is not paying the correct National Minimum Wage to your workers where they qualify for it illegal, it can also result in disgruntled workers entitled to take you to an employment tribunal. As it is illegal, you can also be taken to court by the Government.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This article will explain when the <a href=\"https:\/\/legalvision.co.uk\/employment\/minimum-entitlements\/\">National Minimum Wage will increase<\/a>. It will explain what the National Minimum Wage is and who it applies to. It will also detail how much it currently is and when it will increase, including the future rates.\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">What Does the National Minimum Wage Mean?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">As an employer, you must pay a minimum wage to your workers who are at least school leaving age and who qualify for this. This is called the <a href=\"https:\/\/legalvision.co.uk\/employment\/minimum-wage-vs-living-wage\/\">National Minimum Wage<\/a>. School leaving age is the last Friday in June where the person will be 16 years old at the end of that school summer holiday. Your employees aged 23 years old or above are entitled to the National Living Wage.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Workers entitled to the National Minimum Wage includes, for example:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">part-time workers;<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">casual workers;<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><a href=\"https:\/\/legalvision.co.uk\/employment\/zero-hours-contracts\/\">zero-hours contracts<\/a>;<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">agency workers;<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">apprentices;<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><a href=\"https:\/\/legalvision.co.uk\/employment\/employer-responsibilities-workers-disability\/\">disabled workers<\/a>;<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">foreign workers; and\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">workers on probation.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Those not entitled to the National Minimum Wage are, for example, those who are self-employed, voluntary workers or company directors.<\/span><\/p>\n<div class=\"box box--icon box--info\">\n<p><span style=\"font-weight: 400;\">Paying the National Minimum Wage is a legal requirement for all employers, regardless of the size of your business. Any contract of employment you may have with your staff that states that their wage is less than the National Minimum Wage is not legally binding.<\/span><\/p>\n<\/div>\n<h2><span style=\"font-weight: 400;\">What Are the Current National Minimum Wage Rates?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The minimum wage rate depends on the age of your employer or worker.<\/span><\/p>\n<p><b>Current rate:<\/b> <span style=\"font-weight: 400;\">\u00a0 <\/span><b>\u00a0Wage band:<\/b><\/p>\n<table style=\"width: 440px;\">\n<tbody>\n<tr>\n<td style=\"width: 106px;\">\n<p><span style=\"font-weight: 400;\">\u00a34.30<\/span><\/p>\n<\/td>\n<td style=\"width: 334px;\">\n<p><span style=\"font-weight: 400;\">Apprentice<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 106px;\">\n<p><span style=\"font-weight: 400;\">\u00a34.62<\/span><\/p>\n<\/td>\n<td style=\"width: 334px;\">\n<p><span style=\"font-weight: 400;\">Aged 16 to 17 years old<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 106px;\">\n<p><span style=\"font-weight: 400;\">\u00a36.56<\/span><\/p>\n<\/td>\n<td style=\"width: 334px;\">\n<p><span style=\"font-weight: 400;\">Aged 18 to 20 years old<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 106px;\">\n<p><span style=\"font-weight: 400;\">\u00a38.36<\/span><\/p>\n<\/td>\n<td style=\"width: 334px;\">\n<p><span style=\"font-weight: 400;\">Aged 21 to 22 years old<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 106px;\">\n<p><span style=\"font-weight: 400;\">\u00a38.91<\/span><\/p>\n<\/td>\n<td style=\"width: 334px;\">\n<p><span style=\"font-weight: 400;\">Aged 23 years or more (termed National Living Wage)<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n<a href=\"#content-next\"\n   class=\"block p-4 mt-10 text-xl font-bold text-center text-white no-underline bg-gray-800 rounded-t-xl\">\n    Continue reading this article below the form\n    <i class=\"text-xl fa-regular fa-arrow-down\"><\/i>\n<\/a>\n<div class=\"px-6 pt-10 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The increase takes effect from 1 April, and there is no set amount that the National Minimum Wage rises each year. The increase of the National Minimum Wage for 1 April 2020 to 31 March 2021 to the National Minimum Wage for 1 April 2021 to 31 March 2022 was, for example, 7p for those aged 16 to 17 years old.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In 2021, the <\/span><a href=\"https:\/\/www.gov.uk\/government\/organisations\/low-pay-commission\"><span style=\"font-weight: 400;\">Low Pay Commission<\/span><\/a><span style=\"font-weight: 400;\">, an independent advisory board, gave the Government recommendations on the National Minimum Wage from 1 April 2022. The Government accepted these and published them at the end of October 2021, displaying the new National Minimum Wage, which will take effect from 1 April 2022.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This is as follows:<\/span><\/p>\n<p><b>\u00a0Rate from 1 April 2022:<\/b> <span style=\"font-weight: 400;\"> \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 <\/span><b>Wage band:<\/b><\/p>\n<table style=\"width: 614px;\">\n<tbody>\n<tr>\n<td style=\"width: 211px;\">\n<p><span style=\"font-weight: 400;\">\u00a34.81<\/span><\/p>\n<\/td>\n<td style=\"width: 403px;\">\n<p><span style=\"font-weight: 400;\">Apprentice<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 211px;\">\n<p><span style=\"font-weight: 400;\">\u00a34.81<\/span><\/p>\n<\/td>\n<td style=\"width: 403px;\">\n<p><span style=\"font-weight: 400;\">Aged 16 to 17 years old<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 211px;\">\n<p><span style=\"font-weight: 400;\">\u00a36.83<\/span><\/p>\n<\/td>\n<td style=\"width: 403px;\">\n<p><span style=\"font-weight: 400;\">Aged 18 to 20 years old<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 211px;\">\n<p><span style=\"font-weight: 400;\">\u00a39.18<\/span><\/p>\n<\/td>\n<td style=\"width: 403px;\">\n<p><span style=\"font-weight: 400;\">Aged 21 to 22 years old<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 211px;\">\n<p><span style=\"font-weight: 400;\">\u00a39.50<\/span><\/p>\n<\/td>\n<td style=\"width: 403px;\">\n<p><span style=\"font-weight: 400;\">Aged 23 years or more (termed National Living Wage)<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><span style=\"font-weight: 400;\">How Does an Employer Respond to the National Minimum Wage Increase?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">As an employer, you must pay the correct amount for the National Minimum Wage, so you should know when the National Minimum Wage increases and its increased amount. If you do not pay the right amount, your worker can take you to an employment tribunal. Also, <\/span><a href=\"https:\/\/www.gov.uk\/government\/organisations\/hm-revenue-customs\"><span style=\"font-weight: 400;\">Her Majesty\u2019s Revenue and Customs<\/span><\/a><span style=\"font-weight: 400;\"> can take you to court.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">When the National Minimum Wage increases, you must pay your workers the new increased rate. However, this does not apply precisely on the day of increase, the 1st of April each year. Instead, you are required to pay your workers the increased rate for the first pay reference period following the rise.\u00a0<\/span><span style=\"font-weight: 400;\">A pay reference period for your workers could be, for example, daily, weekly, or monthly. <\/span><\/p>\n<div class=\"box box--icon box--info\">\n<p><span style=\"font-weight: 400;\">Therefore, if your pay reference period for your worker is monthly and is on the 20th of each month, they will be paid the old rate from the 1st April until the 19th of April despite the increase taking place from the 1st of April. You must then pay the increased National Minimum Wage rate from the next pay reference period, from 20th April onwards.\u00a0<\/span><\/p>\n<\/div>\n<h2><span style=\"font-weight: 400;\">Key Takeaways<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Paying your workers the correct National Minimum Wage is a legal requirement. Different rates apply depending on your worker\u2019s age, so it is essential to make yourself aware of these rates. However, the National Minimum Wage rates increase yearly, and the new rates apply from 1 April onwards. Last year, the 1 April 2022 rate was announced in October 2021. The prior announcement can help you, as an employer, to be aware of the new National Minimum Wage rates and allow you to prepare for them. Getting the National Minimum Wage wrong or paying it incorrectly can cause issues for you with an employment tribunal and potentially with HMRC.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you need help when the National Minimum Wage increases in England and Wales, our experienced <a href=\"https:\/\/legalvision.co.uk\/employment-lawyers-lp\/\">employment lawyers<\/a> can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents for a low monthly fee. So call us today on <a href=\"tel:+448081968584\" class=\"AVANSERnumber dynamic-number\">0808 196 8584<\/a> or visit our<\/span>\u00a0<a href=\"https:\/\/legalvision.co.uk\/membership\"><span style=\"font-weight: 400;\">membership page<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Frequently Asked Questions<\/span><\/h2>\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1643085894738\"><strong class=\"schema-faq-question\">What is the National Minimum Wage?<\/strong> <p class=\"schema-faq-answer\">The National Minimum Wage is the minimum wage you are legally required to pay your workers who qualify for it. The rates differ depending on the age of your worker, and where they are 23 years old or above, it is called the National Living Wage.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1643085906894\"><strong class=\"schema-faq-question\">When does the National Minimum Wage increase?<\/strong> <p class=\"schema-faq-answer\">The National Minimum Wage increases every year from 1 April onwards. You must pay the new increased rate from the first pay reference period following the 1 April.<\/p> <\/div> <\/div>\n<div class=\"not-prose m-feedback-prompt\">\n    <!-- Thumbs up\/down bar -->\n    <div class=\"m-feedback-prompt__main\">\n        <div class=\"m-feedback-prompt__title\">Was this article helpful?<\/div>\n        <div>\n            <!--span class=\"m-feedback-prompt__button--text\">Thanks!<\/span-->\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--yes\"\n                    data-analytics-link=\"feedback-prompt:yes\" aria-label=\"Agree\">\n                <i class=\"fa-regular fa-thumbs-up fa-3x\"><\/i>\n            <\/button>\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--no\"\n                    data-analytics-link=\"feedback-prompt:no\" aria-label=\"Disagree\">\n                <i class=\"fa-regular fa-thumbs-down fa-3x\"><\/i>\n            <\/button>\n        <\/div>\n    <\/div>\n\n    <!-- Feedback form -->\n    <div class=\"m-feedback-prompt__form\">\n        <div class=\"m-feedback-prompt__form--thanks \">\n            <div>Thanks!<\/div>\n            <p>\n                We appreciate your feedback \u2013 your submission has been successfully received.            <\/p>\n        <\/div>\n        <form id=\"contact-form\" class=\"m-feedback-prompt__form--form\" action=\"\" method=\"post\">\n            <input type=\"hidden\" id=\"authenticity_token\" name=\"authenticity_token\" value=\"7ad8280d8e\" \/><input type=\"hidden\" name=\"_wp_http_referer\" value=\"\/api\/wp\/v2\/posts\/2105\" \/>            <input value=\"https:\/\/legalvision.co.uk\/employment\/minimum-wage-increase\/\" type=\"hidden\" name=\"currenturl\"\n                   id=\"currenturl\">\n            <input value=\"When Does the National Minimum Wage Increase in England and Wales?\" type=\"hidden\" name=\"currenttitle\"\n                   id=\"currenttitle\">\n            <label>\n                <!-- display on thumbs-up -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--yes\">\n                    Can you tell us <span class=\"font-semibold\">why<\/span> you found it helpful?\n                <\/span>\n\n                <!-- display on thumbs-down -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--no text-lg\">\n                    How can we better improve this article?\n                <\/span>\n                <textarea name=\"feedbackmessage\" id=\"feedbackmessage\" required><\/textarea>\n            <\/label>\n\n            <div class=\"m-feedback-prompt__form--error\" id=\"form-submit-error\"><\/div>\n            <button id=\"submit-contact-form-button\" type=\"submit\" name=\"commit\" class=\"m-feedback-prompt__form--submit\"\n                    data-analytics-link=\"feedback-prompt:submit\">\n                Submit            <\/button>\n        <\/form>\n    <\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>It is a legal requirement to pay your workers the National Minimum Wage where they qualify for it. The National Minimum Wage is the statutory amount you must pay your workers and is set yearly by the Government. As the National Minimum Wage is subject to change annually, you must ensure that you are aware<a href=\"https:\/\/legalvision.co.uk\/employment\/minimum-wage-increase\/\">Continue reading <span class=\"sr-only\">&#8220;When Does the National Minimum Wage Increase in England and Wales?&#8221;<\/span><\/a><\/p>\n","protected":false},"author":13326,"featured_media":585,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"3269,2332,1794,2720,2159,2871","_relevanssi_noindex_reason":"","editor_notices":[],"footnotes":""},"categories":[35],"tags":[20,21,223,338,438,439],"class_list":["post-2105","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-employment","tag-small-business","tag-medium-business","tag-large-business","tag-hmrc","tag-national-minimum-wage","tag-national-living-wage"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.1.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>When Does the National Minimum Wage Increase? 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Prior to her freelance writing work, Clare worked for UK central government in policy and communication roles. She has also run her own businesses where she founded a magazine and was editor-in-chief. She is currently studying part-time towards a PhD predominantly in international public law. Qualifications: PhD, Human Rights Law (underway), University of Bedfordshire, Post graduate diploma, Law, Middlesex University.\",\"sameAs\":[\"https:\/\/www.linkedin.com\/in\/ms-clare-susannah-f-4a243545\/\"],\"url\":\"https:\/\/legalvision.co.uk\/author\/clarefarmer\/\"},{\"@type\":\"Question\",\"@id\":\"https:\/\/legalvision.co.uk\/employment\/minimum-wage-increase\/#faq-question-1643085894738\",\"name\":\"What is the National Minimum Wage?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"The National Minimum Wage is the minimum wage you are legally required to pay your workers who qualify for it. 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