Increases to Statutory Payments and Limits – April 2021


1 April: National Minimum Wage

From 1 April 2021, the National Living Wage will increase from £8.72 to £8.91 an hour.

The National Living Wage currently applies to workers aged 25 and over (excluding those in the first year of an apprenticeship). However, it will be extended to 23 and 24-year-olds from 1 April.

National Minimum Wage rates for those under the age of 23 and first year apprentices will also increase as follows:

  • Workers aged 21 to 22: £8.36 (up from £8.20)

  • Workers aged 18 to 20: £6.56 (up from £6.45)

  • Workers aged 16 to 17: £4.62 (up from £4.55)

  • Apprentices in their first year: £4.30 (up from £4.15)

Agricultural Minimum Wage in Wales

The Welsh government has yet to announce the agricultural minimum wage rates that will apply in Wales from 1 April.

4 April: Family-related payments

From 4 April, Statutory Maternity Pay, Statutory Paternity Pay, Statutory Adoption Pay, Statutory Shared Parental Pay and Statutory Parental Bereavement Pay will increase from £151.20 to £151.97 per week (or, if lower, 90% of an employee’s average weekly earnings).

6 April: Statutory Sick Pay (SSP)

From 6 April, SSP also increases from £95.85 to £96.35 per week.

6 April: Compensation limits

For dismissals with an effective date of termination on or after 6 April, the cap on the value of a week’s pay for certain statutory purposes, such as calculating statutory redundancy pay and basic awards of compensation, increases from £538.00 to £544.00.

The maximum compensatory award for unfair dismissals will increase from the higher of 52 weeks’ normal pay and £88,519.00 to the higher of 52 weeks’ normal pay and £89,493.00.

Statutory guarantee pay

Although somewhat overshadowed by entitlements under the Coronavirus Job Retention Scheme, during periods of lay-off or short-time working an employee may be entitled to a statutory guarantee payment, which is calculated by multiplying the number of normal working hours on the workless day by the guaranteed hourly rate. The maximum guarantee payment was set at £30.00 per day (subject to a maximum of five days or £150 in any three months) from 6 April 2020. There will be no increase in that this April.