The new tax year brings the annual payment increases in many pay bandings; some from the beginning of the month and some follow shortly afterward. See our tables below for what’s changed and when.
Minimum wage
| National Minimum Wage | 1 April 2018 | 1 April 2017 |
|
Aged 25 and above (national living wage rate) |
£7.83 | £7.50 |
| Aged 21 to 24 inclusive | £7.38 | £7.05 |
| Aged 18 to 20 inclusive | £5.90 | £5.60 |
|
Aged under 18 (but above compulsory school leaving age) |
£4.20 | £4.05 |
| Apprentices aged under 19 | £3.70 | £3.50 |
|
Apprentices aged 19 and over, but in the first year of their apprenticeship |
£3.70 | £3.50 |
| Rates are per hour. Be aware of anyone who has a birthday due which will push them into the next banding. These apply to nearly every worker. | ||
Family friendly and other statutory payments
| Other Statutory Payments | 6 April 2018 | 6 April 2017 |
| Lower Earnings Limit (LEL) | £116 per week | £113 per week |
| Statutory Sick Pay (SSP) | £92.05 per week | £89.35 per week |
| Statutory Redundancy Pay (SRP) – a week’s pay cap | £508 | £489 |
|
Statutory Guarantee Pay (SGP)
|
£28 per day (payable for 5 workless days in a 3 month period) | £27 per day (payable for 5 workless days in a 3 month period) |
| Statutory Maternity Pay (SMP) – weekly rate for first 6 weeks | 90% of the employee’s average weekly earnings | 90% of the employee’s average weekly earnings |
| SMP – weekly rate for remaining weeks | £145.18 or 90% of the employee’s average weekly earnings, whichever is lower | £140.98 or 90% of the employee’s average weekly earnings, whichever is lower |
| Statutory Paternity Pay (SPP) – weekly rate | £145.18 or 90% of the employee’s average weekly earnings, whichever is lower | £140.98 or 90% of the employee’s average weekly earnings, whichever is lower
|
| Statutory Adoption Pay (SAP) – weekly rate for first 6 weeks | 90% of employee’s average weekly earnings | 90% of employee’s average weekly earnings |
| SAP – weekly rate for remaining weeks | £145.18 or 90% of the employee’s average weekly earnings, whichever is lower | £140.98 or 90% of the employee’s average weekly earnings, whichever is lower |
| Statutory Shared Parental Pay (ShPP) – weekly rate | £145.18 or 90% of the employee’s average weekly earnings, whichever is lower | £140.98 or 90% of the employee’s average weekly earnings, whichever is lower |
| Minimum auto-enrolment contributions will also rise on 6 April to a total of 5% (2% to be made by the employer and 3% to be made by the member of staff). | ||
What the tribunals can award
| Awards | 6 April 2018 | 6 April 2017 |
| Maximum basic award for unfair dismissal and statutory redundancy payment (30 weeks’ pay subject to the limit on week’s pay) | £15,240 | £14,670 |
| Minimum basic award for dismissal on trade union, health and safety, occupational pension scheme trustee, employee representative and on working time grounds only | £6,203 | £5,970 |
| Maximum award for unlawful inducement relating to trade union membership or activities, or collective bargaining | £4,059 | £3,907 |
| Maximum compensatory award for unfair dismissal | A year’s pay subject to max cap of £83,682 | A year’s pay subject to max cap of £80,541 |
| Minimum compensation for employees excluded/expelled from trade union | £9,474 | £9,118 |
| Contract claims (if a claim for breach of contract (eg wrongful dismissal) is brought in an employment tribunal, compensation is capped at £25,000. If the claim is for more than £25,000, it can be made in the county court or high court | £25,000 | £25,000 |
