April updates to payment rates and compensation limits

Published on: 07/04/2021


Employers must keep in mind recent increases to the financial thresholds used for various employment law calculations – including a week’s pay in statutory redundancy payments and pay rates for sickness and family-related absences.

The pennies all add up and mistakes could lead to claims. See below for a round-up of the key changes.

From 1 April 2021

The National Living Wage now applies to workers aged 23 and over (previously only for workers aged 25 and over) and has increased to £8.91 per hour.

The National Minimum Wage increases to:

  • £8.36 for 21 to 22 year olds
  • £6.56 for 18 to 20 year olds
  • £4.62 for 16 and 17 year olds
  • £4.30 for apprentices
From 4 April 2021

The weekly rate of pay in calculations for Statutory Maternity, Paternity, Adoption, Shared Parental and Parental Bereavement Pay has increased to £151.97.

The standard rate for statutory sick pay calculations has increased to £96.35.

From 6 April 2021

The limit on a week’s pay has increased to £544. This figure is used in the calculation of statutory redundancy payments and the basic award for unfair dismissal, where the effective date of termination is on or after 6 April 2021.

In addition to changes in the basic award calculation above, the maximum compensatory award for unfair dismissal will now be the lower of 12 months’ salary or £89,493 (increased from £88,519).

For discrimination claims presented on or after 6 April 2021, the thresholds for the injury to feelings award (Vento bands) will be:

  • A lower band of £900 to £9,100
  • A middle band of £9,100 to £27,400
  • An upper band of £27,400 to £45,600.

 For further help with applying these changes to your organisation, please contact our employment team. 


This information is for guidance purposes only and should not be regarded as a substitute for taking professional and legal advice. Please refer to the full General Notices on our website.