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Legal Updates

April updates to payment rates and compensation limits

07 April 2021 #Employment


Employers must keep in mind recent increases to the financial thresholds used for various employment law calculations – including a week’s pay in statutory redundancy payments and pay rates for sickness and family-related absences.

The pennies all add up and mistakes could lead to claims. See below for a round-up of the key changes.

From 1 April 2021

The National Living Wage now applies to workers aged 23 and over (previously only for workers aged 25 and over) and has increased to £8.91 per hour.

The National Minimum Wage increases to:

  • £8.36 for 21 to 22 year olds
  • £6.56 for 18 to 20 year olds
  • £4.62 for 16 and 17 year olds
  • £4.30 for apprentices

From 4 April 2021

The weekly rate of pay in calculations for Statutory Maternity, Paternity, Adoption, Shared Parental and Parental Bereavement Pay has increased to £151.97.

The standard rate for statutory sick pay calculations has increased to £96.35.

From 6 April 2021

The limit on a week’s pay has increased to £544. This figure is used in the calculation of statutory redundancy payments and the basic award for unfair dismissal, where the effective date of termination is on or after 6 April 2021.

In addition to changes in the basic award calculation above, the maximum compensatory award for unfair dismissal will now be the lower of 12 months’ salary or £89,493 (increased from £88,519).

For discrimination claims presented on or after 6 April 2021, the thresholds for the injury to feelings award (Vento bands) will be:

  • A lower band of £900 to £9,100
  • A middle band of £9,100 to £27,400
  • An upper band of £27,400 to £45,600.

 For further help with applying these changes to your organisation, please contact our employment team. 

Clarkslegal, specialist Employment lawyers in London, Reading and throughout the Thames Valley.
For further information about this or any other Employment matter please contact Clarkslegal's employment team by email at employmentunit@clarkslegal.com by telephone 020 7539 8000 (London office), 0118 958 5321 (Reading office) or by completing the form on this page.
Disclaimer
This information is for guidance purposes only and should not be regarded as a substitute for taking legal advice. Please refer to the full General Notices on our website.

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Liz  Bradley

Liz Bradley
Solicitor

E: lbradley@clarkslegal.com
T: 0118 960 4638
M: 07775742501

Contact

Employment team
+44 (0)118 958 5321