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).
This article is for information only and does not constitute legal advice. We recommend seeking professional advice before taking any action on the information provided. If you would like to discuss your specific circumstances, please feel free to contact us on 0118 951 6200.
