In April each year, the rates for various employment law payments are updated and employers need to be sure to incorporate the appropriate changes, including increases to wages, statutory pay and other rates. Below is a summary of the key changes and for full details of all the rates changes and policy changes you can download our Employment Essentials guide.
Increase to minimum wage and other statutory pay rates
From 1 April 2023 the following rates apply for National Minimum/Living wage:
- Apprentices - rate will increase to £6.40per hour (increase of £1.12)
- 16-17 years old- rate will be £6.40 per hour
- 18 to 20 years old - rate will increase to £8.60 per hour (rise of £1.11)
- National Living Wage 21 years old and above - rate will be £11.44 per hour
On 7 April the rates of statutory sick pay (SSP) rise from £109.40 to £116.75 per week.
Family friendly policies
From 7 April statutory family payment rates also increase, therefore maternity, paternity, shared parental, parental bereavement and adoption pay increase from £172.48 to £184.03.
Additionally, paternity leave can now be taken as 2 non-consecutive weeks from 6 April.
Compensation limits for certain tribunal awards and other statutory payments
When termination of employment occurs on or after 6 April 2024, the following rates apply:
- The limit on a week's pay increases from £643 to £700
- The same weekly limit will apply to the calculation of statutory redundancy payments
- The maximum compensatory award for unfair dismissal in Employment Tribunal awards is increasing to £115,115
New right to carer’s leave
From 6 April, employees with a dependant with a long-term care need can request one week’s unpaid leave every 12 months.
Find out more…
Our Prism services for businesses can help you stay up to date with these and other employment law issues. If you would like to discuss any of the above changes our employment team will be happy to help.
Published 29 March 2024.
