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Statutory rates and compensation limits: UK employment law

Statutory rates and compensation limits: UK employment law

The Statutory rates are reviewed and updated annually, and the most recent changes come into effect on April 6, 2024. Organisations and tribunals in the UK are guided by annually set rates.

Statutory redundancy pay

The statutory rate of a maximum week's pay for calculating redundancy basic award:   

  • A maximum week's pay basic award until 5 April 2024: £643.  
  • From 6 April 2024: £700 

The maximum basic award (the amount that this statutory redundancy payment can reach) is based on 30 weeks of pay subject to the limit on a week’s pay: 

  • Until 5 April 2024: £19,290
  • From 6 April 2024: £21,000

Guarantee (lay-off) payments

A Guarantee Payment is a legal minimum that an employer should pay in the event of a lay-off or short-time working (when hours are cut). Employees are eligible when they have been working continuously for at least one month, with a regular pattern of work.
 
The set pay rate under these terms is: 

  • Until 5 April 2024: £35 a day (maximum £175, five days in any three-month period)
  • From 6 April 2024: £38 a day (maximum £190, five days in any three-month period)

National Minimum Wage and National Living Wage

The National Minimum Wage (NMW) applies to those who are of at least school leaving age. The National Living Wage (NLW) applies to those 23 or over. From 1 April 2024 the NLW will also apply to workers aged 21 and over.

Until 31 March 2024:

  • Apprentice rate (aged under 19, or 19 and over and in their first year of apprenticeship): £5.28 per hour  
  • Apprentice rate (19 or over and in their second year of apprenticeship onwards): £7.49 per hour (National Minimum Wage) 
  • Young workers rate for workers aged 16-17: £5.28 per hour  
  • National Minimum Wage for workers aged 18-20: £7.49 per hour  
  • Workers aged 21-22: £10.18 per hour  
  • National Living Wage for workers aged 23 and over: £10.42 per hour   

From 1 April 2024: 
 
Apprentices:

  • Apprentice rate (aged under 19, or 19 and over and in their first year of apprenticeship): £6.40 per hour. 
  • Apprentice rate (19 or over and in their second year of apprenticeship onwards): £8.60 per hour (National Minimum Wage) 

Workers:

  • Young workers rate for workers aged 16-17: £6.40 per hour 
  • National Minimum Wage for workers aged 18-20: £8.60 per hour 
  • National Living Wage for workers aged 21 and over: £11.44 per hour 

Statutory sick pay

Statutory Sick Pay (SSP) applies when an employee or agency worker has been unwell for four consecutive days*   

SSP is up to 28 weeks of statutory pay at the following rates: 

  • Until 5 April 2024: £109.40 (weekly)  
  • From 6 April 2024: £116.75 (weekly) 

Qualifying criteria applies.

Statutory maternity pay

SMP allows for 39 weeks of statutory pay. The first six weeks is paid at 90% of the employee’s average weekly earnings. The remaining weeks at the following rate, or 90% of earnings if lower. The rates are as follows: 

  • Until 5 April 2024: £172.48  
  • From 6 April 2024: £184.03 

Qualifying criteria applies.

Statutory paternity pay

SSP allows for two weeks of statutory pay. Note that while the duration of the leave will remain the same, the law is changing in 2024 to allow these weeks to be split across the first 12 months following the child’s birth. The CIPD provides employment law updates in a dedicated timetable. The SSP rates are as follows:

  • Until 5 April 2024: £172.48
  • From 6 April 2024: £184.03

Qualifying criteria applies.

Statutory adoption Pay

SAP allows for 39 weeks of statutory pay. The first six weeks is paid at 90% of the employee’s average weekly earnings. The remaining weeks at the following rate, or 90% of earnings if lower:  

  • Until 5 April 2024: £172.48  
  • From 6 April 2024: £184.03  

Maternity allowance

Maternity allowance is a payment made to women who are not entitled to Statutory Maternity Pay, either because their pay rate is too low to qualify, or they are self-employed. The allowance is either 90% of their weekly earnings or the following rate (whichever is lower).

The following rate applies:

  • From 9 April 2024: £172.48 a week
  • From 10 April 2024: £184.03 a week

Statutory shared parental pay

Statutory Shared Parental Pay (ShPP) applies to parents and has separate eligibility requirements to Shared Parental Leave (SPL). 

Up to 37 weeks of statutory pay (split between partners) at the following rates:  

  • Until 5 April 2024: £172.48  
  • From 6 April 2024: £184.03 

Qualifying criteria applies.

Parental bereavement pay

A payment for employees who meet the qualifying criteria. The two weeks of pay is set at the following rate:

  • Until 1 April 2024: £172.48 (weekly)
  • From 2 April 2024: £184.03 (weekly)