Increase to statutory payments and extension of the NMW record keeping provisions
On 1 April the National Minimum Wage (NMW) and National Living Wage (NLW) levels increased under the National Minimum Wage (Amendment) Regulations 2021 (the Amendment Regulations).
It's worth noting that the NLW now applies to all workers aged 23 and over (the previous age of eligibility was 25). By 2024 it is due to come down again so that it will apply to all workers aged 21 and over.
- The NLW has risen from £8.72 to £8.91.
- The NMW rate for those aged 21 to 22 has risen from £8.20 to £8.36.
- The NMW rate for 18 to 20 year-olds has risen from £6.45 to £6.56.
- The NMW rate for those aged 16 to 17 has risen from £4.55 to £4.62.
- The apprentice rate has risen from £4.15 to £4.30.
Under the Amendment Regulations the period for which an employer must keep records sufficient to establish that it is paying a worker at a rate at least equal to the applicable minimum wage rate has now been extended from 3 years to 6 years.
Under the Social Security Benefits Up-rating Order 2021 the rate of statutory maternity, paternity and adoption pay, shared parental pay and maternity allowance has increased (as of 1 April) from £151.20 to £151.97.
Meanwhile the Employment Rights (Increase of Limits) Order 2021 came into force on 6 April. It revises the compensation limits for certain tribunal awards and other statutory payments from 6 April 2021. The limit on a week's pay has increased from £538 to £544 and the maximum compensatory award for unfair dismissal has increased from £88,519 to £89,493 (in all cases where the effective date of termination falls on or after 6 April 2021).