National living wage to increase by £345 per year

National living wage to increase by £345 per year

Budget 2021: The national living wage (NLW) is to rise by £345 a year from April, Chancellor of the Exchequer Rishi Sunak confirmed in the Budget today (3 March).

Under the plans, the existing rate of £8.72 an hour will increase by 19p to £8.91 – equivalent to £345 annually for a full-time worker.

The pay grade will also apply to 23- and 24-year-olds who are currently exempt from the NLW.

Sunak said: “As the economy begins to recover, we are shifting our resources and focus towards getting people into decent, well-paid jobs.

“We reaffirm our commitment to end low pay, increasing the national living wage to £8.91 from April – an annual pay rise of almost £350 for someone working full time on the national living wage.”

Those aged 21 and 22 on the national minimum wage will also see their hourly rate rise from £8.20 to £8.36 – a 2% increase – and 18- to 20-year-olds will see their pay jump from £6.45 to £6.56 per hour next month.