April 2021 sees an increase to various statutory pay rates and changes to the National Minimum wage rates (and age at which certain rates are received).

Rises in statutory pay rates (per week) from 4 April 2021:

  • Statutory Maternity Pay, Statutory Paternity Pay, Statutory Adoption Pay, Shared Parental Pay  – All rise from £151.20 to £151.97
  • Statutory Sick Pay rises from £95.85 to £96.35

National Minimum Wage rates (per hour) from 1 April 2021:

  • National Living Wage rises from £8.72 to £8.91 – (NB this rate will apply to those age 23 and over (previously 25))
  • Standard adult rate rises from £8.20 to £8.36 (applies to those aged 21 and 22)
  • Development rate rises from £6.45 to £6.56 (applies to those aged 18 – 20)
  • Young workers rate rises £4.55 to £4.62 (applies to those aged 16 and 17)
  • Apprentice rate rises from £4.15 to £4.30

Remember to check dates of birth and adjust pay for those who will now fall into higher pay brackets from 1 April 2021 onwards.

Where the effective date of termination falls on or after 6 April 2021:

  • The limit on a week’s pay increases from £538 to £544.  The maximum basic award for unfair dismissal and statutory redundancy pay will therefore rise to £16,320.
  • The maximum compensatory award for unfair dismissal increases from £88,519 to £89,493.
  • The minimum basic award for certain unfair dismissals (including health and safety dismissals) increases from £6,562 to £6,634.

 

Please note this information is provided by way of example and may not be complete and is certainly not intended to constitute legal advice. You should take bespoke advice for your circumstances.

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