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The National Minimum Wage and Living Wage - 2021

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This article covers the national minimum wage and living wage rates when using Sage 50cloud Payroll.


The National Minimum Wage (NMW) is the minimum hourly rate that most employees are entitled to. The minimum wage an employee gets depends on their age and if they're an apprentice. 

TIP: The National Minimum Wage rates are changing from April 2022. Read more >

Minimum wage rates

The rates normally change on 1 April every year.

Rates from 1 April 2021

AgeHourly Rate (£)
23 and older£8.91
21 - 22£8.36
18 - 20£6.56
16 - 17£4.62
ApprenticeshipFind out more >
For full details about what payments should and shouldn't be included in pay for minimum wage, visit GOV.UK

Minimum wage check

You can use the minimum wage check option to easily identify minimum wage employees, including apprentices, and ensure that you always pay them enough. When an employee has a birthday that moves them up to the next minimum wage rate and is being paid less than the minimum wage for their age band, the minimum wage check prompts you to amend the rate.

 NOTE: The wage check applies from the first full tax period after the birthday that moves them up to the next minimum wage rate. 

You can then set specific pay elements to be included in the minimum wage calculation and view and update your minimum wage legislation settings.

You can set up apply the minimum wage check to your employees individually in the employee record or to multiple employees via the global changes option.

Check your pay element settings

You can specify which payments and deductions are to be included in the minimum wage calculations, and whether or not both the hours/no and rate are included, or just the rate. Read more >

Update your employees' rates

You can use the minimum wage check option to prompt you when an employee's being paid below the NMW. To increase the employee's default rates to meet the NMW, you need to adjust the rates in the employee record.

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