Annual changes in statutory rates, limits and benefits will take effect in April.
This article sets out the key changes.
The facts
National Minimum Wage
Changes to the National Minimum Wage will take effect from 1 April 2021.
The age at which employees become entitled to the National Living Wage will change from 25 to 23 years old.
| Age | Current Rate | New Rate |
| 23 and over | £8.72 | £8.91 |
| 21 to 22 | £8.20 | £8.36 |
| 18 to 20 | £6.45 | £6.56 |
| 16 to 17 | £4.55 | £4.92 |
| Apprentice rate for those aged under 18, or in the first year of apprenticeship | £4.15 | £4.30 |
Statutory payments for time off work
The following changes are effective from 4 April 2021:
| Payment type | Current rate | New rate |
| Statutory Maternity Pay | £151.20 | £151.97 |
| Statutory Paternity Pay | £151.20 | £151.97 |
| Statutory Adoption Pay | £151.20 | £151.97 |
| Shared Parental Pay | £151.20 | £151.97 |
| Statutory Sick Pay | £95.85 | £96.35 |
Compensation Limits
The following limits come into effect from 6 April 2021:
| Type of compensation | Current limit | New limit |
| Maximum basic award for unfair dismissal | £16,140 | £16,320 |
| Maximum compensatory award for unfair dismissal | £88,519 | £89,493 |
| Week’s pay | £538 | £544 |
Redundancy
The following limits come into effect from 6 April 2021:
| Week’s pay | £538 | £544 |
| Maximum redundancy payment | £16,140 | £16,320 |
