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Budget 2021 | PwC comments on the National Minimum Wage and the National Living Wage


John Harding, employment tax lead at PwC, said:

"The increase in the National Minimum Wage and the National Living Wage (for those 23 and above) to £9.50 an hour will be welcome news for employees. However, due to the complexity of the NMW and NLW regulations it could create a headache for employers, many of whom have recently found themselves breaching the rules on technicalities. The implications can be serious with penalties of up to 200% of the underpayment, and being publicly named and shamed by the Department of Business. 

"One of the more common areas where businesses trip up is the categorisation of workers for NMW purposes. There was a change in the NMW Regulations in April 2020 to make it easier for workers to be categorised as "Salaried Hours" workers rather than "Unmeasured Workers". Given this change occurred during the pandemic it seems to have been missed by many employers. They will need to take action immediately and ensure that they communicate to their workers before 31 December this year."


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Chris French

Chris French

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