National Living & Minimum Wage rate changes from April 2022

If you are currently paying your employees the National Minimum Wage (applies to those of school leaving age) or the National Living Wage (for people under 23) then you need to be aware of the changes coming into place from 1st April 2022.

23 and over

For people aged 23 and over the minimum you can currently pay them per hour is £8.91 from 1st April 2022 this will be increasing to £9.50.

Aged 21-22

If your employees fall into this bracket then the minimum you should currently be paying them per hour is £8.36 this will increase to £9.18.

Aged 18-20

For employees aged 18 to 20 the current rate is £6.56 rising to £6.83 from 1st April 2022.

Under 18

If you employ people under the age of 18 you should be paying them £4.62 per hour as a minimum. This will increase to £4.81 from 1st April this year.

Apprentices

If you currently have apprentices working for you the rate you should be paying them as a minimum is £4.30. From April 2022 this will be £4.81. For this rate to apply to your apprentice they should be under 19 or if over 19 it must be their first year as an apprentice. After they have completed their first year of employment with you, or they are over 19, then the national minimum wage will apply.

If you use Sage Payroll software for your payroll then the minimum rates will be updated in the software. You can see the new rates by going to Company > Legislation (see screen shot below for an example):

For peace of mind, in Sage 50 Payroll you can always use the check box to ensure the minimum wage rates for each employee meet the legal minimum requirements too.

If you need assistance with your Sage Payroll software then we are on hand to help.

22/03/2022

“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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