National Minimum and Living Wage rate changes
The National Living Wage for workers aged 25 and over will increase to £7.83 per hour.
The national minimum wage (NMW) rates will increase to
- £3.70 from £3.50 for apprentices
- £4.20 from £4.05 for 16 and 17 year olds
- £5.90 from £5.60 for 18 – 20 year olds
- £7.38 from £70.5 for 21 – 24 year olds
New statutory rates
- Statutory Maternity Pay, Statutory Paternity Pay, Shared Parental Pay and Statutory Adoption Pay to increase to £145.18 per week.
Private sector employers must publish first Gender Pay Gap reports before this date (snapshot date 5 April 2017).
Statutory Sick Pay increases to £92.05 per week
Taxation of termination payments
The way in which termination payments are taxed changes on 6 April 2018.
New rules will apply to any termination of employment that takes place on or after 6 April 2018. From this date all notice pay is to be treated as earnings and will be subject to tax and national insurance deductions – regardless of whether or not there is a pay in lieu of notice clause (PILON) in the employment contract.
For employment terminating before 6 April 2018 the old rules will apply (even where the termination payment is paid after this date).
A week’s pay
The maximum amount for a week’s pay used to calculate statutory redundancy payments will increase to £508 per week from £489 per week.
Maximum compensatory award
For dismissals on or after 6 April 2018 the maximum compensatory award for unfair dismissal is increasing from £80,541 to £83,682 (or a years’ salary if you earn less than this.
At Jackson Boyd we have a great deal of experience of dealing with employment cases. To discuss a potential case with us, or for advice in relation to the above changes, please contact us online by clicking here or speak to a member of our specialist team on 0333 222 1855.