April 2024 - Annual increases to statutory payments

The start of the new tax year brings about increases to various payments, including National Minimum Wage, Statutory Sick Pay, Statutory Maternity and other family leave Pay and the maximum week’s pay for calculating statutory redundancy payments.

The key increases are set out below:

National Minimum Wage, changes taking effect on 1st April 2024:

• The National Living Wage, which is now payable to all workers aged 21 and over (previously 23 and over) increases from £10.42 per hour to £11.44 per hour
• For workers aged 18-20, NMW increases from £7.49 per hour to £8.60 per hour
• For workers aged 16-17, NMW increases from £5.28 to £6.40 per hour
• Apprentices aged 19 and under OR over 19 in the first year of their apprenticeship, NMW increases from £5.28 to £6.40 per hour

The voluntary employers scheme ‘Real Living Wage’ increases to at least £12 per hour nationally and at least £13.15 per hour in London.

Statutory Payments, changes taking effect on 6th April 2024:

• Statutory Sick Pay increases from £109.40 to £116.75 per week
• Statutory Maternity Pay, Shared Parental Pay, Paternity Pay and Adoption Pay increase from £172.48 per week to £184.03 per week

Redundancy and Employment Tribunal Payments, apply to any dismissals taking effect on or after 6th April 2024:

• Maximum week’s pay for calculating statutory redundancy entitlement, increases from £643 per week to £700 per week resulting in a maximum statutory redundancy payment, depending on age, pay and length of service, of £21,000
• Maximum compensatory award in successful unfair dismissal claims increases from £105,707 to £115,115 or 52 weeks gross pay, whichever is the lower

For further information or assistance please contact Dean Wilson’s Employment Team:

Clare Waller, Partner, crw@deanwilson.co.uk

Hermione Porter, Solicitor, hep@deanwilson.co.uk