KEY DATES:
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.
ACTION
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.
