Changes to Employment Pay Rates

By April 5, 2019Employment Law

April traditionally sees the increase of various employment-related pay rates. This year is no different.  Here’s what you need to know; whether you are an employer or employee.

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 – and unfair dismissal and redundancy calculations

In a number of employment claims, the value of any award or how much employees are entitled to is calculated by reference to a prescribed “weekly pay”.  This weekly pay is capped at a set amount which as of 6 April 2019, has increased to £525.

Consequently, statutory redundancy pay will increase, with the maximum payment increasing to £15,750.

Similarly, the maximum compensatory award for unfair dismissal increases to £86,444 (this only applies to dismissals which take place on or after 6th April 2019) or 52 weeks’ gross actual pay, if that is lower.

Sick Pay

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

Family friendly rates

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.

Pensions

From 6th April 2019, the minimum level of employer contributions into the auto-enrolment pension scheme increases to 3% with the employee required to contribute 5%.  This means that the total contribution into the pension scheme will now be total 8%.

For any further information on this or any other employment matter, please contact Ilinca Mardarescu