Even during these challenging times, we are at that time of the year again when the new Statutory Pay increases come into force and as an organisation you will need to ensure that you take on board and make the necessary changes. There’s going to be increases in the National Living Wage (NLW) and National Minimum Wage (NMW). Below is what you need to know, and the changes which are due to take place.
1 April — NLW increases
Age | Rate from 1 April 2019 | Rate from 1 April 2020 | Rate from 1 April 2021 |
Workers aged 25 and over (NLW)* | £8.21 an hour | £8.72 an hour | £8.91 |
Workers aged 21 and over* | £7.70 an hour | £8.20 an hour | £8.36 |
Development rate for workers aged 18-20 | £6.15 an hour | £6.45 an hour | £6.56 |
Young workers rate for workers aged 16-17 | £4.35 an hour | £4.55 an hour | £4.62 |
Apprentices under 19, or over 19 and in the first year of the apprenticeship | £3.90 an hour | 4.15 an hour | £4.30 |
The minimum wage rates are reviewed annually and will be updated in April.
*From 2021, the NLW will be extended to cover all adults aged 23 and above
5 April — Statutory pay for maternity, paternity, adoption and shared parental leave increases
Your employees who are on maternity, paternity, adoption or shared parental leave will receive an increase in their statutory pay from £151.20 to £151.97 per week.
The rate of £151.97 per week will also be applicable to those on Parental Bereavement Leave. Parental Bereavement Leave allows the right to two weeks paid leave for employed parents who experience the passing of a child under the age of 18.
6 April — Statutory sick pay goes up
Statutory sick pay that you will need to pay if your employees are off due to ill health will increase from £95.85 to £96.35 per week. Sick pay must be paid to staff who have been ill off work for four days or more which must be paid for up to 28 weeks.
6 April — Cap on a “week’s pay” for redundancy and tribunal claims to increase
The cap on a week’s pay for redundancy and tribunal claims will rise from £538 to £544 while the limit on the guarantee payment payable to an employee in respect of any one day will remain at £30 The amount of compensatory awards for unfair dismissal will be increased to £89,493.
I think there is enough here to keep you busy! Should you require assistance with the review or updating of your policies do not hesitate to contact SGB HR Services.
Research and Source Information – CIPD-Inform and Croner-i
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