This April there will be a number of increases to rates and limits for wages, statutory time off work, including sick pay and redundancy payments. We’ve summarised the key changes below.

The national living wage will increase to £9.50 per hour for workers over 23 years old. 

There are also changes to the national minimum wage with the rate of £9.18 per hour for workers between 21 and 22 inclusive and £6.83 for workers aged 18 and 20 inclusive. Finally, there are changes to the minimum young workers rate which shall raise to £4.81 per hour.

Payments in respect of time off work will also increase with rates for statutory maternity/adoption pay and statutory paternity pay/shared parental pay being increased to £156.66 per week.

Furthermore, payments for absence from work due to incapacity (statutory sick pay) will increase in April 2021 from £96.35 per week to £99.35.

Statutory redundancy payments are also due to increase with the maximum gross weekly pay cap increasing from £544 per week to £571 per week. This means that any employee who is to be made redundant and earns more than £571 per week, must be paid redundancy pay based on this new higher cap.

The UK Government provided more information here.

Should you need advice on any aspect of employment law either as an employee or an employer, find out more about our services and how to contact us here.

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