What do I need to know about changes to the National/Minimum living wage?

Back in November of last year it was announced that as of April 2021 The National Living and National Minimum Wage would be increasing. Not only has the amount risen but the age in which employees become eligible has lowered. 

As an employer it’s vital that you know these facts so that you are paying your employees fairly.

All employees aged 23 and above must be on The National Living Wage as a minimum, previously this was aged 25 and over. For those under the age of 23, The National Minimum Wage will be applicable. This includes all workers of school leaving age, up to the age of 22. Make sure you are aware of this and make the relevant changes necessary to your payroll.

Previous National Minimum Wage and National Living Wage rates:

Current National Minimum Wage and National Living Wage rates:

The exception to this is Apprentices. The minimum wage for Apprentices is £4.30 per hour for those under age 19 or if they are in their first year of their apprenticeship. For example at the age of 20 if an Apprentice is in their first year they will be paid £4.30 per hour as a minimum. They are only eligible for The National Minimum Wage if they are over 19 and have completed their first years apprenticeship. 

To calculate whether or not you are paying your employees incorrectly visit The National Minimum Wage Calculator on the government website.

Payroll Software

Did you know you can apply the minimum/living wage check in your Sage 50 and Cloud Payroll software?

This is how:

Applying the minimum wages check to more than one employee

  1. Go to >Employee List, and select the relevant employees
  2. Select Tasks then Global Changes.
  3. Click on Payments then choose Set Apply Minimum/Living Wage Flag.
  4. Confirm Yes then click OK.

Applying the minimum wage check to just one employee:

  1. Go to > Employee List and double-click the relevant employee.
  2. Click on the Employment tab then select Pay Elements.
  3. Highlight the checkbox > Apply Minimum/Living Wage Flag 
  4. Then Save by clicking Save then Close.

If you need any support please get in touch by emailing info@sageaccountssolutions.co.uk


Any advice relating to accounts or tax should be sought from your tax accountant. Sage Accounts Solutions Limited will not be held responsible for any loss or damage caused as a result of the information contained herein.

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