What are the National Minimum Wage and National Living Wage changes in 2022?

Employers should be aware that on 1 April 2022, the government is increasing both the National Minimum Wage and National Living Wage rates. Our Payroll team are here to help you pay the correct rates.

How much will National Living Wage and National Minimum Wage be going up by?

The hourly rate for the minimum wage depends on the worker’s age and whether your employee is an apprentice. These rates are for the National Living Wage (for those aged 23 and over) and the National Minimum Wage (for those of at least school leaving age). The rates change on 1 April every year:

  • From £8.91 to £9.50 per hour for workers aged 23 and over
  • From £8.36 to £9.18 an hour for workers aged 21 – 22
  • From £6.56 to £6.83 an hour for workers aged 18 – 20
  • From £4.62 to £4.81 an hour for workers aged 16 – 17
  • From £4.30 to £4.81 an hour for apprentices

 

Who is entitled to the National Minimum Wage?

‘Workers’ must be at least school leaving age to receive the National Minimum Wage and must be 23 or over to get the National Living Wage. What about Part-Timers? It makes no difference to a worker’s entitlement to the National Minimum Wage whether they work for you full-time or part-time, or whether they are an agency worker or a temporary or casual worker. Workers are entitled to the correct minimum wage if they’re:

  • part-time
  • casual labourers, for example someone hired for one day
  • agency workers
  • workers and homeworkers paid by the number of items they make
  • apprentices
  • trainees, workers on probation
  • disabled workers
  • agricultural workers
  • foreign workers
  • seafarers
  • offshore workers

 

Entitlement for apprentices

Apprentices are entitled to the apprentice rate if they’re either under 19 or 19 or over and in the first year of their apprenticeship. Apprentices over 19 who have completed the first year of their apprenticeship are entitled to the correct minimum wage for their age.

 

Who’s not entitled to the minimum wage?

Most workers in the UK are entitled to National Minimum Wage. Groups who are not entitled and include:

  • Self employed people
  • Volunteers or Voluntary Workers
  • Company Directors

 

More information on the rates and eligibility can be found at gov.uk.

 

Are you ready to make the necessary changes to your and/or your clients’ payroll arrangements?

If you would like further information on how the changes affect you, or need help in making sure you’re paying the new rates correctly, please get in touch with myself or a member of our Payroll team.

Further Reading

You may also find the information in these articles useful for the stage of your business

Need more advice?

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For more information, or to discuss your specific requirements, please get in touch