Payment Increases for April 2018

Payment Increases April 2018 | HR Solutions

The new tax year brings the annual payment increases in many pay bandings; some from the beginning of the month and some follow shortly afterward. See our tables below for what’s changed and when.

 

Minimum wage

National Minimum Wage 1 April 2018 1 April 2017

Aged 25 and above

(national living wage rate)

£7.83 £7.50
Aged 21 to 24 inclusive £7.38 £7.05
Aged 18 to 20 inclusive £5.90 £5.60

Aged under 18 (but above

compulsory school leaving age)

£4.20 £4.05
Apprentices aged under 19 £3.70 £3.50

Apprentices aged 19 and over,

but in the first year of their apprenticeship

£3.70 £3.50
Rates are per hour. Be aware of anyone who has a birthday due which will push them into the next banding. These apply to nearly every worker.

 

Family friendly and other statutory payments

Other Statutory Payments 6 April 2018 6 April 2017
Lower Earnings Limit (LEL) £116 per week £113 per week
Statutory Sick Pay (SSP) £92.05 per week £89.35 per week
Statutory Redundancy Pay (SRP) – a week’s pay cap £508 £489

Statutory Guarantee Pay (SGP)

 

£28 per day (payable for 5 workless days in a 3 month period) £27 per day (payable for 5 workless days in a 3 month period)
Statutory Maternity Pay (SMP) – weekly rate for first 6 weeks 90% of the employee’s average weekly earnings 90% of the employee’s average weekly earnings
SMP – weekly rate for remaining weeks £145.18 or 90% of the employee’s average weekly earnings, whichever is lower £140.98 or 90% of the employee’s average weekly earnings, whichever is lower
Statutory Paternity Pay (SPP) – weekly rate £145.18 or 90% of the employee’s average weekly earnings, whichever is lower £140.98 or 90% of the employee’s average weekly earnings, whichever is lower

 

Statutory Adoption Pay (SAP) – weekly rate for first 6 weeks 90% of employee’s average weekly earnings 90% of employee’s average weekly earnings
SAP – weekly rate for remaining weeks £145.18 or 90% of the employee’s average weekly earnings, whichever is lower £140.98 or 90% of the employee’s average weekly earnings, whichever is lower
Statutory Shared Parental Pay (ShPP) – weekly rate £145.18 or 90% of the employee’s average weekly earnings, whichever is lower £140.98 or 90% of the employee’s average weekly earnings, whichever is lower
Minimum auto-enrolment contributions will also rise on 6 April to a total of 5% (2% to be made by the employer and 3% to be made by the member of staff).

 

What the tribunals can award 

Awards 6 April 2018 6 April 2017
Maximum basic award for unfair dismissal and statutory redundancy payment (30 weeks’ pay subject to the limit on week’s pay) £15,240 £14,670
Minimum basic award for dismissal on trade union, health and safety, occupational pension scheme trustee, employee representative and on working time grounds only £6,203 £5,970
Maximum award for unlawful inducement relating to trade union membership or activities, or collective bargaining £4,059 £3,907
Maximum compensatory award for unfair dismissal A year’s pay subject to max cap of £83,682 A year’s pay subject to max cap of £80,541
Minimum compensation for employees excluded/expelled from trade union £9,474 £9,118
Contract claims (if a claim for breach of contract (eg wrongful dismissal) is brought in an employment tribunal, compensation is capped at £25,000. If the claim is for more than £25,000, it can be made in the county court or high court £25,000 £25,000

 

If you need outsourced HR support and payroll services, call 0844 324 5840 or contact us online to find out how we can help.

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