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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
