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Key employment compensation pay rates
The government updates most of the employment pay and compensation rates on an annual basis.
Here's a summary of the current key rates.
New rates have been proposed which will be applicable from 1 April 2018. These are shown in brackets.(New rates correct as at 2 March 2018 in accordance with the National Minimum Wage (Amendment) Regulations 2018, published on 6 February 2018.)
The Minimum Wage
The minimum rate for workers varies according to age.
- standard adult rate for workers aged 21 to 24 it is £7.05 (£7.38) per hour
- development rate for 18 to 20-year-olds it is £5.60 (£5.90) per hour
- young workers rate for 16 to 17-year-olds it is £4.05 (£4.20) per hour
- the apprentice rate is £3.50 (£3.70) per hour
- the accommodation offset £6.40 (£7.00) a day
Last updated 1 April 2017 in accordance with the National Minimum Wage (Amendment) Regulations 2017 SI 2017/465.
The National Living Wage
The National Living Wage for workers aged over 25 is £7.50 (£7.83*) per hour. (See the Gov.uk page)
Statutory Maternity, Paternity and Adoption Pay
The standard rates of statutory maternity, paternity, adoption and shared parental pay are £140.98 per week - or 90 per cent of the person's average weekly earnings if lower.
(Last updated 2 April 2017 in accordance with the Social Security Benefits Up-rating Order 2017 SI 2017/260)
Statutory Sick Pay
The standard rate of statutory sick pay is £88.45 to £89.35 per week.
(Last updated 6 April 2017 in accordance with the Social Security Benefits Up-rating Order 2017 SI 2017/260.)
Employment Claims Compensation Limit
Compensation levels and minimum awards for those pursuing employment related claims (for example, following dismissal) are:
- rates for a week's pay - £489
- the maximum compensatory award - £80,541
(Last updated on 1 April 2017 by virtue of The Employment Rights (Increase of Limits) Order 2017 SI 2017/175)
Note: The Employment Rights (Increase of Limits) Order 2018 SI 2018/194 has now been made. It will make effective the following increases from 6 April 2018:
- Maximum compensatory award for unfair dismissal: £83,682 (from £80,541);
- Rates for a week’s pay (for calculating redundancy payments and unfair dismissal awards: £508 (from £489);
- Minimum basic award for dismissals related to H&S/employee representative/ Trade Union/occupational pension trustee claims: £6,203 (from £5,970).
Be aware of the transition provisions: the new rates will only apply to those claims where the appropriate date arises after 6 April 2018 as set out in section 4 of the Order. For example, if compensation is sought relating to the termination of the employee’s contract, the appropriate date will be the date of the termination.