Statutory pay and compensation limits
The latest requirements for pay rates, compensation, notice periods and NICs for your staff and candidates.
National Minimum Wage / National Living Wage
The tables on this page provide you with details of the minimum wage rates that all of your workers are entitled to.
National Minimum Wage
Age Group | From April 2022 | From April 2023 | From April 2024 |
Workers aged 23 and over (min rate per hour) |
£9.50 | £10.42 |
£11.44 |
Workers aged 21-22 (min rate per hour) |
£9.18 | £10.18 | £11.44 |
Workers aged 18-20 (min rate per hour) |
£6.83 | £7.49 | £8.60 |
Workers aged 16 and 17 (min rate per hour) |
£4.81 | £5.28 | £6.40 |
Apprentices under 19 (or aged 19 and over in the first year of their apprenticeship) |
£4.81 | £5.28 | £6.40 |
Accommodation offset allowance (daily rate) |
Daily rate £8.70 |
Daily rate £9.10 |
Daily rate £9.99 |
The National Minimum Wage and the National Living Wage are changed annually, in April.
From 1st April 2024, workers aged 21 and over will be entitled to the National Living Wage.
Parental payments
The parental payment rates and shared parental payment rates for the current tax year, for use with your staff and candidates, are included in the two tables below.
For more details, see the Legal Guide entries on maternity pay, paternity pay, adoption pay, and shared parental pay.
Parental payments
Type Of Payment |
From 3 April 2022 | From 3 April 2023 | From 7 April 2024 | Maximum Period |
Statutory Maternity Pay (Higher Rate) |
90% of normal earnings | 90% of normal earnings | 90% of normal earnings | 6 weeks |
Statutory Maternity Pay (Basic Rate) |
£156.66 or 90% of the employee’s average weekly earnings, whichever is lower |
£172.48 or 90% of the employee’s average weekly earnings, whichever is lower |
£184.03 or 90% of the employee's average weekly earnings, whichever is lower | 33 weeks |
Maternity Allowance |
£156.66 or 90% of the employee’s average weekly earnings, whichever is lower |
£172.48 or 90% of the employee’s average weekly earnings, whichever is lower | £184.03 or 90% of the employee's average weekly earnings, whichever is lower | 39 weeks |
Statutory Paternity pay |
£156.66 or 90% of the employee’s average weekly earnings, whichever is lower |
£172.48 or 90% of the employee’s average weekly earnings, whichever is lower | £184.03 or 90% of the employee's average weekly earnings, whichever is lower | 2 weeks |
Statutory Adoption Pay (Higher Rate)** |
90% of normal earnings | 90% of normal earnings | 90% of normal earnings | 6 weeks |
Statutory Adoption Pay (Basic Rate)** |
£156.66 or 90% of the employee’s average weekly earnings, whichever is lower |
£172.48 or 90% of the employee’s average weekly earnings, whichever is lower | £184.03 or 90% of the employee's average weekly earnings, whichever is lower | 33 weeks |
Shared parental leave payments
Type of Payment |
From April 2022 | From April 2023 | From April 2024 | Maximum Period |
Shared Parental Pay |
£156.66 or 90% of the employee's average weekly earnings, if lower | £172.48 or 90% of the employee's average weekly earnings, if lower | £184.03 or 90% of the employee's average weekly earnings, whichever is lower | 50 weeks |
Specified Minimum Amount (employment and earnings criteria) |
£30 per week | £30 per week | £30 per week | Not applicable |
Parental Bereavement Leave payments
Parental Bereavement Pay | From 6 April 2023 | From 7 April 2024 | Maximum Period |
£172.48 per week or 90% of the individual's average weekly earnings, whichever is lower | £184.03 or 90% of the employee's average weekly earnings, whichever is lower |
2 weeks (can be taken as a block or separately) to be taken within 56 weeks of the date of death or stillbirth |
Sickness and guarantee payments
The figures provided below can be used to calculate the statutory sick pay that your employees and workers are entitled to. For more details around payment and eligibility, see the Statutory Sick Pay section of the Legal Guide.
Statutory Sick Pay
Type of Payment |
From 6 April 2022 |
From 6 April 2023 |
From 8 April 2024 |
Maximum Period |
---|---|---|---|---|
Sick pay (weekly) |
£99.35 |
£109.40 |
£116.75 |
28 weeks in any 3 year period |
Guarantee Pay
Type of Payment |
From 6 April 2022 | From 6 April 2023 | From 6 April 2024 |
---|---|---|---|
Guarantee pay (weekly)
|
£155.00 (5 days in any period of 3 months - £31.00 per day) |
£155.00 (max. 5 days in any 3 month period - £31.00 per day) |
£175.00 (max. 5 days in any 3 month period - £35.00 per day) |
Unfair dismissal
Use the tables below to determine the amount that might be payable in an unfair dismissal case with an employee. For more details around eligibility and what makes a dismissal unfair, see the Unfair Dismissal section of the Legal Guide.
Unfair Dismissal |
From 6 April 2021 | From 6 April 2022 | From 6 April 2023 | From 6 April 2024 |
---|---|---|---|---|
Maximum Basic Award |
£16,320 |
£17,130 |
£19,290 | £21,000 |
Maximum 'Week's pay' for Basic Award |
£544 |
£571 |
£643 | £700 |
Maximum Compensatory Award |
£89,493 |
£93,878 |
£105,707 | £115,115 |
Additional Award |
26-52 weeks pay (subject to maximum of £544 per week) |
26-52 weeks pay (subject to maximum of £571 per week) |
26-52 weeks pay (subject to maximum of £643 per week) | 26-52 weeks pay (subject to maximum of £700 per week) |
Discrimination Award |
No Limit |
No Limit |
No Limit | No Limit |
Redundancy payments
Use the tables below to calculate redundancy payments that would be payable to employees who are made redundant. For more details, including eligibility and fair procedures, see the Redundancy section of the Legal Guide.
Type of payment |
From 6 April 2021 |
From 6 April 2022 |
From 6 April 2023 | From 6 April 2024 |
---|---|---|---|---|
Statutory redundancy pay (weekly cap) |
£544 per week |
£ 571 per week |
£643 per week | £700 per week |
Compensation limits
If required to pay compensation for a breach of employment law, the payments are capped at the following compensation limits. For more details of the relevant topics, see the Legal Guide entries on unfair dismissal, redundancy, employee contracts and terms, flexible working, and TUPE.
Type of Payment |
From 6 April 2021 |
From 6 April 2022 | From 6 April 2023 | From 6 April 2024 |
---|---|---|---|---|
Maximum Compensatory Award Unfair Dismissal | £89,493 |
£93,878 |
£105,707 | £115,115 |
Maximum ‘Week’s pay’ | £544 |
£571 |
£643 | £700 |
Maximum – Statutory Redundancy/Basic Award | £16,320 (30 weeks) |
£17,130 (30 weeks) |
£19,290 (30 weeks) | £21,000 (30 weeks) |
Maximum Award – Breach of right to be accompanied |
£1,088 (2 weeks pay) |
£1,122 (2 weeks pay) |
£1,286 (2 weeks pay) |
£1,400 (2 weeks pay) |
Maximum Award – Faulty written particulars (tagged on to another employment claim) |
£2,152 (4 weeks pay) |
£2,284 (4 weeks pay) |
£2,572 (4 weeks pay) |
£2,800 (4 weeks pay) |
Maximum Award – Failure to deal with a flexible working request |
£4,352 (8 weeks) |
£4,568 (8 weeks) |
£5,144 (8 weeks) |
£5,600 (8 weeks) |
Maximum Award – Failure to inform /consult (redundancy) | 90 days' actual pay |
90 days' actual pay |
90 days' actual pay | 90 days' actual pay |
Maximum Award – Failure to inform/consult (TUPE Transfer) | 13 weeks' actual pay |
13 weeks' actual pay |
13 weeks' actual pay | 13 weeks' actual pay |
Minimum Basic Award – certain unfair dismissals i.e. where the main reason for dismissal is for trade union activities/membership; or dismissals for activities as a health and safety representative, employee representative or occupational pension trustee | £6,634 |
£6,959 |
£7,836 | £8,533 |
Statutory minimum notice periods
When dismissing employees, the following minimum periods of notice apply - although longer periods of notice can be agreed between the employer and employee.
Employee | Employer | |
---|---|---|
Employed for less than one month |
No statutory notice required |
No statutory notice required |
Employed for a period of between one month and two years |
1 week's notice to employer |
1 week's notice to employee |
Employed continuously for two years or more |
1 week's notice to employer |
1 week's notice for every complete year worked (maximum 12 weeks) |
National Insurance contributions
From April 2021 - 2022 | From April 2022 - 2023 | From 6 April 2023 - 5 January 2024 | From 6 January 2024 - 5 April 2024 | From 6 April 2024 - 5 April 2025 | |
---|---|---|---|---|---|
Lower earnings limit, primary class 1 | £120 per week |
£123 per week |
£123 per week | £123 per week | £123 per week |
Upper earnings limit, primary class 1 | £962 per week |
£967 per week |
£967 per week | £967 per week | £967 per week |
Employees’ primary class 1 rate between primary threshold and upper earnings limit | 12% |
13.5% |
12% | 10% | 8% |
Employees’ primary class 1 rate above upper earnings limit | 2% |
3.25% |
2% | 2% | 2% |
Employers’ secondary class 1 rate above secondary threshold | 13.8% |
15.05% |
13.8% | 13.8% | 13.8% |
Disclaimer
This information is for guidance purposes only and should not be regarded as a substitute for taking legal advice. Please refer to the full terms and conditions on our website.