New minimum wage rates and compensation limits announced


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The draft National Minimum Wage (Amendment) Regulations 2018 propose to change the rates of the national minimum wage. The draft regulations provide that the following hourly rates of the national minimum wage will apply from 1 April 2018:

  • The national living wage (25 and over) will be £7.83 (previously £7.50)
  • The standard adult rate (21 to 24) will be £7.38 (previously £7.05)
  • The development rate (18 to 20) will be £5.90 (previously £5.60)
  • The young workers rate will be £4.20 (previously £4.05)
  • The apprenticeship rate will be £3.70 (previously £3.50).

Meanwhile the Employment Rights (Increase of Limits) Order 2018 has been made and will increase the compensation limits and minimum awards that are payable from 6 April 2018.

  • The limit on the compensatory award will rise from £80,541 to £83,682
  • The limit on a week's pay will increase from £489 to £508
  • Guarantee pay will increase from £27 to £28 per day

This article is taken from HR Law – March 2018.

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