All change: new pay rates and limits as from April 2019

All change: new pay rates and limits as from April 2019

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April sees an increase in a number of rates and limits of relevance to employers, including compensation for unfair dismissal, redundancy pay, national minimum wage, statutory sick pay and statutory family leave pay.

Details of the most notable changes are below:

National Minimum Wage

As from 1 April 2019, the following minimum rates of pay will apply:

  • National Living Wage (per hour) Age 25+: £8.21
  • Standard adult rate (per hour) Age 21-24: £7.70
  • Development rate (per hour) Age 18-20: £6.15
  • Young workers rate (per hour) Age 16-17: £4.35
  • Apprentice rate (per hour): £3.90

Weekly pay

The value of a number of employment claims, including statutory redundancy pay, are calculated by reference to an employee’s weekly pay. This weekly pay is itself subject to a cap of a prescribed amount.

As from 6 April 2019, the prescribed cap on weekly pay will increase to £525. Consequently, statutory redundancy pay will increase, with the maximum payment increasing to £15,750.

Compensation for unfair dismissal

Compensation for unfair dismissal claims is split into a “basic” award and a “compensatory” award. The basic award is calculated in the same way as statutory redundancy pay and will therefore increase as described above.

The compensatory award is calculated by reference to the claimant’s loss of earnings, subject to a statutory cap. The cap on the compensatory award for ordinary unfair dismissal claims will increase as of 6 April 2019 to £86,444 (or 52 weeks’ gross actual pay, if lower).

SSP

From 6 April 2019 the rate at which statutory sick pay is paid will increase to £94.25 per week.

SMP, SAP, SPP and ShPP

The prescribed rate for statutory maternity pay, adoption pay, paternity pay and shared parental pay will increase as of 7 April 2019 to £148.68 per week.

Contact our experts for further advice

View profile for Kate MaguireKate Maguire

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