The Employment Law Blog

Statutory Payment Changes

From April 2019 the statutory minimum employment related payments will change. The most commonly used ones are set out below.

There will be changes to the National Living Wage and National Minimum Wages rates to be implemented from 1 April 2019. These will be as follows:

National Living Wage

25+ £8.21

National Minimum Wage:

21-24 £7.70
18-20 £6.15
16-17 £4.35
Apprentice £3.90

There is also an increase to £7.55 per day where the employer provides a worker with living accommodation, for each day accommodation is provided.

From 6 April 2019 the rates payable for family related leave and sickness absence will also increase as follows:

Statutory Maternity and Adoption Pay

First six weeks at 90% of weekly pay

Additional 33 weeks at £148.68

Statutory Paternity Pay

Two weeks at £148.68 (or 90% of weekly pay if that is lower)

Statutory Maternity Allowance and Shared Parental Leave Pay

Up to 39 weeks at £148.68 (or 90% of weekly pay if that is lower)

Statutory Sick Pay

SSP will increase to a rate of £94.25 per week for up to 28 weeks.

Unfair dismissal / redundancy pay

From 6 April 2019, the cap on a weeks’ pay in Employment Tribunal claims will rise to £525 and the maximum compensatory award for an unfair dismissal claim will rise to the lower of either a years’ gross pay or £86,444. It is therefore possible for Tribunals to award a total of £102,194 in unfair dismissal compensation when the maximum basic award is also taken into account.

The increases which are in line with current inflation rates are not unexpected but they will no doubt be unwelcome for employers as it will mean an increase in the cost of making redundancies (the maximum Statutory Redundancy Payment will increase to £15,750).

The new rates will apply to events which give rise to compensation that occur on, or after, 6 April 2019. The old limits will apply to cases where the event occurred before 6 April 2019.

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