The following annual increases took effect this month:
KEY DATES
1 April 2019
The National Minimum Wage and National Living Wage
6 April 2019
Compensation limits including a week’s pay
Statutory maternity, paternity, adoption and shared parental pay
ISSUE & IMPACT
National Minimum Wage and National Living Wage
All rates were increased on 1 April 2019 to:
- Apprentice: £3.90 (from £3.70)
- Under 18: £4.35 (from £4.20)
- 18-20: £6.15 (from £5.90)
- 21-24: £7.70 (from £7.38)
- 25 and over: £8.21 (from £7.83)
A link to current and historic NMW/NLW rates is available here.
Increase to compensation limits including a week’s pay
From 6 April 2019, the maximum amount of ‘a week’s pay’ (for the purposes of calculating statutory redundancy payments and compensation for unfair dismissal) will increase from £508 to £525. This means that for dismissals which take effect on or after 6 April 2019:
- the maximum basic award and statutory redundancy payment will be £15,750 (previously £15,240); and
- the maximum compensatory award for unfair dismissal will be £86,444 (previously £83,682).
Increase in statutory rates
As well as other increases, the rate of statutory sick pay increased to £94.25 (from £92.05) per week and statutory maternity, paternity, adoption and shared parental pay increased to £148.68 (from £145.18) per week.
ACTION
Employers should take note of the changes in rates. Please get in touch if you would like to discuss any of these developments.
