Finance Article - June/July 22
Your Questions Answered by TaxAssist Accountants
National Minimum Wage Rate 2022
I’ve heard the national minimum wages figures are going up from April, what will they be?
From 1st April 2022 the national minimum wage figures for all age categories are increasing.
The new rates are:
|Rate from April 2022||Current rate (April 2021 to March 2022)||Increase|
|National Living Wage||£9.50||£8.91||6.6%|
|21-22 Year Old Rate||£9.18||£8.36||9.8%|
|18-20 Year Old Rate||£6.83||£6.56||4.1%|
|16-17 Year Old Rate||£4.81||£4.62||4.1%|
The new rate will apply to the next pay reference period that begins on or after the date:
- a rate increase begins
- an employee reaches a new age bracket
An employee paid on the 27th of each month for a pay period of 28th March to 27th April will start to receive the new rate of minimum wage from 28th April 2022 onwards as this is the start of the first full pay reference period beginning after the increase.
The employee will therefore not see the increase in their wages until the pay date of 27th May 2022.
If you would like any advice or assistance in this area please contact us on 01827 337222 or use our simple online contact form on our website to arrange a free initial consultation.
Information supplied by Cheryl Hopkins, Chartered Certified Accountant, TaxAssist Accountants. Advice shared in this article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayers’ circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take, action, as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.