The Upcoming Increase to the National Minimum Wage – April 2022

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Increase in National Minimum Wage - April 2022

The National Minimum Wage (NMW) is set to increase on 1 April 2022. The increase of the NMW is likely to impact many businesses, who will need to review their payroll as soon as possible.

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What is the National Minimum Wage?

By law, employers must pay a minimum amount on average for the hours employees work. These minimum amounts are called the:

  • National Living Wage (NLW) if you’re aged 23 or over
  • National Minimum Wage (NMW) if you’re aged under 23 or an apprentice

How will the National Minimum Wage change?

The National Minimum Wage is due to increase on 1st April 2022 to the following:

  • Age 23 and above (national living wage rate) – £9.50 an hour                     
  • Age 21 to 22 inclusive – £9.18 an hour
  • Age 18 to 20 inclusive – £6.83 an hour
  • Aged under 18 (but above compulsory school leaving age) – £4.81 an hour
  • Apprentices aged under 19 – £4.81 an hour
  • Apprentices aged 19 and over, but in the first year of apprenticeship – £4.81 an hour

Please note that this rate of pay applies to both hourly paid and salaried employees.

This means that a salaried employee working 40 hours a week would need to be earning a minimum of £19,760 per annum (£1,646.67 per month) if they are aged 23 and above.

A salaried employee working 35 hours a week would need to be earning a minimum of £17,290 per annum (£1,440.83 per month) if they are aged 23 and above.

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