New Statutory Employment Rates from April 2024
The annual uplifts in UK statutory employment rates and payments are as follows for 2024:
Statutory Redundancy Pay
Basic award calculations for statutory redundancy pay will now consider a maximum week’s pay of £643 up to 5 April 2024 and £700 from 6 April 2024. The maximum basic award, capped at 30 weeks’ pay, will be £19,290 until 5 April 2024 and will increase to £21,000 from 6 April 2024.
Guarantee Payments
In instances of lay-off or short-time working, the legal minimum payment is £35 per day, up to £175 over five days in any three-month period, until 5 April 2024. This increases to £38 per day, up to £190 from 6 April 2024.
National Minimum and Living Wages
From 1 April 2024, the National Living Wage will extend to workers aged 21 and over. Current rates up to 31 March 2024 are as follows: £5.28 per hour for apprentices under 19 or in their first year, £7.49 for apprentices in their second year and beyond, £5.28 for workers aged 16-17, £7.49 for workers aged 18-20, £10.18 for workers aged 21-22, and £10.42 for those 23 and over. From 1 April 2024, the rates will increase to £6.40 for apprentices, £8.60 for workers aged 18-20, and £11.44 for those aged 21 and over.
Statutory Sick Pay
Employees are eligible for up to 28 weeks of SSP, which will be £109.40 per week until 5 April 2024, increasing to £116.75 from 6 April 2024.
Statutory Maternity, Paternity, and Adoption Pay
For 39 weeks, the pay is £172.48 until 5 April 2024 and will rise to £184.03 from 6 April 2024. The first six weeks are paid at 90% of the employee’s average weekly earnings.
Maternity Allowance
From 9 April 2024, the rate is £172.48 per week, increasing to £184.03 from 10 April 2024.
Statutory Shared Parental and Bereavement Pay
Pay is £172.48 weekly until 1 April 2024, increasing to £184.03 from 2 April 2024.
Need assistance?
Employers should adjust their payroll systems accordingly to comply with these updates. For specialist advice on the new rules and how they impact your organisation, contact employment law and HR experts.
Last updated: 6 April 2024
Author
Founder and Managing Director Anne Morris is a fully qualified solicitor and trusted adviser to large corporates through to SMEs, providing strategic immigration and global mobility advice to support employers with UK operations to meet their workforce needs through corporate immigration.
She is a recognised by Legal 500and Chambers as a legal expert and delivers Board-level advice on business migration and compliance risk management as well as overseeing the firm’s development of new client propositions and delivery of cost and time efficient processing of applications.
Anne is an active public speaker, immigration commentator, and immigration policy contributor and regularly hosts training sessions for employers and HR professionals
