Are you ready for the Increase in Minimum Wage on 1 April 2021?

If you employ staff, you need to be ready for the increase in the minimum wage rates from 1 April 2021.

The new rates, before tax and other deductions, for example PAYE, student loan repayment, child support, are as follows:

• The adult minimum wage rate will increase from $18.90 to $20.00 per hour.
• The starting-out and training minimum wage rates, being 80% of the adult minimum wage rate, will increase from $15.12 to $16.00 per hour.

Steps to take:

• If you have employees on the minimum wage, advise them of the increase in writing, either by email or letter (variation of their employment contract).
• Ensure that your payroll system is ready for the change in the hourly wage rates.
• If you have any employees on starting-out or training wages, this is also a good time to check to see when they will be eligible to move onto the adult wage rate.

If you are unsure of your obligations, we strongly suggest you seek legal advice before the new rates come into effect.