The following annual increases take effect this week:
1 April 2018
- The National Minimum Wage and National Living Wage
6 April 2018
- Compensation limits including a week’s pay
- Statutory maternity, paternity, adoption and shared parental pay
Also from today, 6 April 2018, the changes to taxation of termination payments come in to force. Please click here to see our earlier update for more information.
ISSUE & IMPACT:
National Minimum Wage and National Living Wage
All rates were increased on 1 April 2018 to:
- Apprentice: £3.70 (from £3.50)
- Under 18: £4.20 (from £4.05)
- 18-20: £5.90 (from £5.60)
- 21-24: £7.38 (from £7.05)
- 25 and over: £7.83 (from £7.50)
A link to current and historic NMW/NLW rates is available here.
Increase to compensation limits including a week’s pay
From today, 6 April 2018, the maximum amount of ‘a week’s pay’ (for the purposes of calculating statutory redundancy payments and compensation for unfair dismissal) will increase from £489 to £508. This means that for dismissals which take effect on or after today:
- the maximum basic award and statutory redundancy payment will be £15,240 (previously £14,670); and
- the maximum compensatory award for unfair dismissal will be £83,682 (previously £80,541).
Increase in statutory rates
As well as other increases today, the rate of statutory sick pay increased to £92.05 (from £89.35) per week and statutory maternity, paternity, adoption and shared parental pay increased to £145.18 (from £140.98) per week.
Employers should take note of the changes in rates and the new taxation rules. Please get in touch if you would like to discuss any of these developments.