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Minimum wage increase to take effect from 1 April 2021

From 1 April 2021, the minimum wage will rise to $20 - up from $18.90, with the increase tipped to lift the incomes of around 200,000 employees nationally.

The training and starting-out minimum wages are also set to increase to $16.00 per hour (currently $15.12), keeping it at 80% of the adult minimum wage.

Across the economy, the minimum wage rise is estimated to increase wages by $216 million and is the most recent step in the Governments work to gradually increase the minimum wage since 2018. Any future increases are yet to be decided by Ministers.

Preparing for 1 April 2021

Business owners will need to ensure they are prepared for the increase by ensuring that you’ve engaged with your accounts, payroll or HR teams before the end of March.

The details of the increase are:
• Adult minimum wage will go up, from $18.90 to $20.00 per hour.
• Starting-out and training minimum wage will go up from $15.12 to $16.00 per hour.
• All rates are before tax and any lawful deductions such as PAYE tax, student loan repayment, or child support.For more information:
[email protected]
06 350 1830

This was published in the 60 Seconds with CEDA newsletter on March 14, 2021. Sign up here to receive our newsletters directly

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