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Recruitment and HR Blog

Employer costs set to rise from April 2022: What employers need to know to be prepared

1st February 2022

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It’s no April Fool, Chancellor Rishi Sunak is set to increase the National Living Wage and National Minimum Wage from April 2022.

Workers aged 21 to 22 are set to benefit the most - at present the National Minimum Wage is £8.36 but from April 1st it’s set to rise to £9.18, which is an increase of 9.8%.

Basic rate workers will get an increase of 6.6% with the National Living Wage rising to £9.50 per hour – a jump of 59p for those over 23 currently on £8.91.

The National Minimum Wage – for those aged 16-17 and 18-20 - will also rise from April, with an increase in line with underlying wage growth, which protects earnings for young workers.

From April 1st 2022, the National Minimum Wage and National Living Wage rates are as follows:

  • National Living Wage (23+) to increase from £8.91 to £9.50
  • National Minimum Wage (21-22) to increase from £8.36 to £9.18
  • National Minimum Wage (18-20) to increase £6.56 to £6.83
  • National Minimum Wage (16-17) to increase £4.62 to £4.81
  • Apprenticeship Wage to increase from £4.30 to £4.81

Apprentices are also set for a timely boost with rates set to increase by 11.9% from £4.30 to £4.81 per hour.

As always, there are a few rules to follow with apprentices only entitled to the rate if they are either aged 19 or under, or aged 19 and over and in their first year of apprenticeship.

It’s a criminal offence for employers to not pay someone the National Minimum Wage or National Living Wage, or to fake payment records, so it’s vital you pay full attention and be fully compliant with the rises.

A few steps to avoid falling foul of the latest changes are:

For more details and guidance on the National Minimum Wage and National Living Wage, visit: https://www.gov.uk/national-minimum-wage-rates

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