Each year in April the Government review and increase statutory payments and this year the increases are lower than expected (in some cases it’s only an increase of pence). This is likely to be a direct result of the coronavirus pandemic and the Governments wider plans to recoup money paid out via the Furlough Scheme, loans and other initiatives put in place over the past 12 months.

The changes became effective in early April and are:

• From1st April 2021 the national living wage (NLW) rate will increase from £8.72 to £8.91 and importantly the NLW which is currently only applied to those aged 25 and will extend to include 23 and 24-year-olds.

• At the same time the minimum wage rates will increase as follows:

21-22 Year Old £8.36

18-20 Year Old £6.56

16-17 Year Old £4.62

Apprentice         £4.30

• From 4^th April 2021 the weekly rate of statutory maternity, paternity, adoption, shared parental and parental bereavement pay increases from £151.20 to £151.97 (this is the rate that applies after the first 6 weeks of pay at 90% of the employee's normal weekly earnings)

• From the 6^th April 2021 the weekly limit on statutory redundancy pay increases to £544. This means that when making an employee redundant on or after 6^th April 2021 their weekly pay is capped at this amount regardless of if their actual salary is higher than this.

• And finally, from 6^th April 2021 the weekly rate of statutory sick pay increases from £95.85 to £96.35.

What should you do now?

If you have any employees that are currently in receipt of statutory payments (including maternity leave, paternity leave, adoption leave, shared parental leave, parental bereavement leave and sick leave) you must make sure that their payments are adjusted in line with the new statutory amounts.

Similarly if you have any employees in receipt of minimum wage or the NLW wage you must ensure that their salaries are increased accordingly and don’t forget that from 1^st April the NLW is extended to 23 and 24 year olds as well.