April is very nearly here again and that means it’s time for the now customary annual increases in statutory payments and tribunal awards.
In order to avoid being caught out by underpaying your staff and potential claims, here is what you need to know:
| Effective date |
Payment/award/cap type
|
New Rate |
| 1 April 2017 | National Living Wage: 25 and over | £7.50 per hour (up from £7.20)
|
| National Minimum Wage: 21 -24 | £7.05 per hour (up from £6.95)
|
|
| 18-20 year olds | £5.60 per hour (up from £5.55)
|
|
| 16-17 year olds | £4.05 per hour (up from £4.00)
|
|
| Apprentices | £3.50 per hour (up from £3.40)
|
|
| Accommodation offset limit (maximum daily deduction from the minimum wage levels) | £6.40 per day (up from £6.00) | |
| 2 April 2017 | Statutory Maternity Pay | £140.98 per week (up from £139.58)
|
| Statutory Paternity Pay | £140.98 per week (up from £139.58)
|
|
| Statutory Adoption Pay | £140.98 per week (up from £139.58)
|
|
| Shared Parental Leave Pay | £140.98 per week (up from £139.58)
|
|
| 6 April 2017 | Cap on a “week’s pay” for statutory redundancy payments
|
£489 (up from £479) |
| Cap on a “week’s pay” for calculating an unfair dismissal basic award
|
£489 (up from £479) | |
| Cap on the unfair dismissal basic award
|
£14,670 (up from £14,370) | |
| Cap on the unfair dismissal compensatory award | £80,541[1] (up from £78,962) [1] Or 52 weeks’ actual gross pay at the time of the dismissal – whichever is lower. |
|
| Statutory Sick Pay | £89.35 per week (up from £88.45) | |
Our employment solicitors work in partnership with organisations to improve their HR practices and advise on employment issues. To discuss this article or any other HR issue call 01392 210700 or employment@stephens-scown.co.uk.