Stephanie Wilcox

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Are you ready for these upcoming employment law changes?

Employment / 06 April 2018


The following annual increases take effect this week:

1 April 2018

  • The National Minimum Wage and National Living Wage

6 April 2018

  • Compensation limits including a week’s pay
  • Statutory maternity, paternity, adoption and shared parental pay

Also from today, 6 April 2018, the changes to taxation of termination payments come in to force.  Please click here to see our earlier update for more information.


National Minimum Wage and National Living Wage

All rates were increased on 1 April 2018 to:

  • Apprentice: £3.70 (from £3.50)
  • Under 18: £4.20 (from £4.05)
  • 18-20: £5.90 (from £5.60)
  • 21-24: £7.38 (from £7.05)
  • 25 and over: £7.83 (from £7.50)

A link to current and historic NMW/NLW rates is available here.

Increase to compensation limits including a week’s pay

From today, 6 April 2018, the maximum amount of ‘a week’s pay’ (for the purposes of calculating statutory redundancy payments and compensation for unfair dismissal) will increase from £489 to £508.  This means that for dismissals which take effect on or after today:

  • the maximum basic award and statutory redundancy payment will be £15,240 (previously £14,670); and
  • the maximum compensatory award for unfair dismissal will be £83,682 (previously £80,541).

Increase in statutory rates

As well as other increases today, the rate of statutory sick pay increased to £92.05 (from £89.35) per week and statutory maternity, paternity, adoption and shared parental pay increased to £145.18 (from £140.98) per week.


Employers should take note of the changes in rates and the new taxation rules.  Please get in touch if you would like to discuss any of these developments.


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This update is for general purposes and guidance only and does not constitute legal or professional advice. You should seek legal advice before relying on its content. This update relates to the prevailing circumstances at the date of its original publication and may not have been updated to reflect subsequent developments. If you have general queries about our updates, please email:

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