National Minimum Wage and Statutory Leave Payments – April 2021

• Workers aged 23 and over: £8.91 an hour 
• Workers aged 21-22: £8.36 an hour
• Development rate for workers aged 18-20: £6.56 an hour
• Young workers rate for workers aged 16-17: £4.62 an hour
• Apprentices under 19, or over 19 and in the first year of the apprenticeship: £4.30 an hour

The national minimum wage (NMW) applies to all workers and is paid at different rates according to age. There is a separate rate for apprentices, and a National Living Wage (NLW) applies to workers aged 23 and over.

Key Points

• From 2021, the NLW will be extended to cover all adults aged 23 and above.
• All workers, except those who are genuinely self-employed, are entitled to receive the NMW.
• Gross pay is used to calculate whether an eligible worker has been paid the minimum wage
• The NMW is calculated by including most financial awards or payments, but excluding allowances such as regional or on-call allowances, unsocial hours payments, tips and gratuities, or any benefits in kind, with the exception of accommodation up to a specified amount
• Employers can average the hourly rate of pay over the pay period
• Single hourly rates that a worker is entitled to in a pay reference period applies on the first day of that period; for example, if a worker turns 25 on January 25, and their next pay reference period begins on February 1, they will receive the NLW from February 1.
• Non-compliance can result in an enforcement notice requiring the employer to pay the difference between what was actually paid and what the worker should have received under the NMW legislation. Further non-compliance could result in the issue of a penalty notice and financial penalties.

Statutory Sick Pay (SSP) Payments from April 2021 

£96.35 per week

Statutory Maternity, Paternity, Adoptions and Shared Parental Leave Payments from April 2021

Statutory Maternity Pay (SMP):

SMP for eligible employees can be paid for up to 39 weeks, usually as follows:

• the first 6 weeks: 90% of their average weekly earnings (AWE) before tax
• the remaining 33 weeks: £151.97 or 90% of their AWE (whichever is lower)

Tax and NI need to be deducted.

Statutory Adoption Pay (SAP):

SAP for eligible employees can be paid for up to 39 weeks, usually as follows:

• the first 6 weeks: 90% of their average weekly earnings (AWE) before tax
• the remaining 33 weeks: £151.97 or 90% of their AWE (whichever is lower)

Tax and NI need to be deducted.

Statutory Paternity Pay (SPP):

Paid for two weeks. 

£151.97 per week, or 90% per cent of the employee’s weekly earnings if this is lower.

Statutory shared parental leave Pay (ShPP):

£151.97 per week, or 90% of the employee’s weekly earnings if this is lower.