If you pay any of your staff the National Minimum Wage or National Living Wage, you will need to be aware of pay increases which come into effect from 1st April 2022, as well as a change in the minimum age people need to be to get the National Living Wage from April 2021.
National Living Wage 2022 increases
The UK government's National Living Wage will increase by 6.6 per cent to £9.50 (from £8.91) from April 2022. This applies to employees aged 23 or older.
According to the Living Wage Foundation, the Real Living Wage in 2022 needs to increase to paying £9.90 or £11.05 for employees in London, referencing the cost of living crisis as a point of growing concern this year for employers and employees.
Track staff pay and benefits across your business with our pay and benefits software feature for SMEs.
Lower age bracket for the National Living Wage
Please note that the National Living Wage was extended to 23 and 24 year olds for the first time in 2021, based on recommendations from the Low Pay Commission. Commissioners also recommended smaller increases for workers aged under 23 given risks to youth employment in the current economic situation. Read more about this on the UK government's National Living Wage 2021 press release.
National Minimum Wage 2022 increases
As of 1st April 2022, the new National Minimum Wage rates will increase to:
- Apprentices – £4.81 (previously £4.30– an 11.9% increase)
- Under 18 – £4.81 (previously £4.62– a 4.1% increase)
- 18-20 – £6.83 (previously £6.56– a 4.1% increase)
- Age 21-22 – £9.18 (previously £8.36– a 9.8% increase)
Please note that people aged 23 and over are entitled to the National Living Wage. Check the Acas website for more information on these increases and how they affect your business.
For customers using our online HR software, if you would like support in updating multiple employee pay rates, email firstname.lastname@example.org band one of our customer support advisors will be happy to guide you through this process.
Users of myhrtoolkit can also receive weekly management emails reporting on employees soon to become 18, 21, 22 or 25, providing a useful reminder of when you need to move employees onto different pay rates. Find out more about weekly management emails.
Did you also know payslip law has changed?
New payslip legislation came into force on 6th April 2020, changing the requirements of employee payslips. To understand the key changes, review our handy guide on payslip law changes.
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Written by Camille Brouard
Camille is a Senior Marketing Executive for myhrtoolkit who writes on topics including HR technology, workplace culture, leave management, diversity, and mental health at work.