New Statutory Rates for Employment Law
There have been several changes to the National Minimum Wage rates, effective from 1 April 2026. These are as listed below:
| NMW Rate 2026/2027 | NMW Rate 2025/2026 | Value Increase | % Increase | |
|---|---|---|---|---|
| National Living Wage (21+) | £12.71 | £12.21 | 50p | 4.1 |
| 18-20-Year-Old Rate | £10.85 | £10.00 | 85p | 8.5 |
| 16-17-Year-Old Rate | £8.00 | £7.55 | 45p | 6.0 |
| Apprentice Rate | £8.00 | £7.55 | 45p | 6.0 |
Family-friendly Rates
There will also be adjustments to family friendly rates, effective from 5 April.
| Leave Type | Rate (paid weekly) |
|---|---|
| Statutory Maternity Pay | For first 6 weeks, 90% of the employee’s average weekly earnings. For the remaining 33 weeks, the lower of £194.32 or 90% of the employee’s average weekly earnings. |
| Statutory Adoption Pay | For first 6 weeks, 90% of the employee’s average weekly earnings. For the remaining weeks, the lower of £194.32 or 90% of the employee’s average weekly earnings. |
| Statutory Paternity Pay | The lower of £194.32 or 90% of the employee’s average weekly earnings. |
| Statutory Shared Parental Pay | The lower of £194.32 or 90% of the employee’s average weekly earnings. |
| Statutory Parental Bereavement Pay | The lower of £194.32 or 90% of the employee’s average weekly earnings. |
| Statutory Neonatal Care Pay | The lower of £194.32 or 90% of the employee’s average weekly earnings. |
Unfair Dismissal
In relation to unfair dismissal, the following updated rates will apply from 6 April, ahead of the significant changes expected to the unfair dismissal framework in early 2027:
- the limit on the compensatory award for unfair dismissal will increase from £118,223 to £123,543; and
- the limit on a week’s pay, used for calculating the basic award for unfair dismissal (and statutory redundancy payments), will increase from £719 to £751.
Statutory Sick Pay
Along with changes under the Employment Rights Act 2025 to the SSP framework, which will take effect on 6 April, there will also be an adjustment to the rate of SSP, which will increase from £118.75 to £123.25 (or 80% of the employee’s average weekly earnings, whichever is lower).
