April 2020 Pay changes

 

Prepare for April changes.

April is a big month for employment regulation changes, with increases in the National minimum and national living wage and the Taylor Review or Good Work Plan.

1 April - National Minimum Wage up 6%

1st April is the day the National Minimum / National Living Wage goes up. The increase - of 6% for the adult rate - reaches the government's target of 60% of average earnings by 2020.

The current and new rates are set out here:

Current Rate   From 1 April 2020 
25+£8.21  25+ £8.72
21-24£7.70 21-24 £8.20
18-20£6.15 18-20 £6.45
16-17£4.35 16-17 £4.55
Apprentices aged under 19 or in first year of apprenticeship£3.90Apprentices aged under 19 or in first year of apprenticeship £4.15
Accommodation Offset£7.55 per dayAccommodation Offset £8.20 per day

 

You must be at least: 

  • school leaving age to get the National Minimum Wage
  • aged 25 to get the National Living Wage - the minimum wage will still apply for workers aged 24 and under 

Other changes in April include: 

Maternity, Paternity and Shared Parental Pay

 From 7 April 2019 From 5 April 2020 
 Statutory Maternity, Paternity, Adoption and Shared Parental Pay £148.68 £151.20

 

 Parental Bereavement Pay

  from 5 April 2020
 Parental Bereavement Pay £151.20 or 90% of average earnings, whichever is the lower

 

Statutory Sick Pay

  From 6 April 2019 From 6 April 2020
 Statutory Sick Pay £94.25 £95.85 
 Earnings Threshold £118.00 £120.00

 

Redundancy, Unfair Dismissal and other penalties

  From 6 April 2019 From 6 April 2020
Limit on weeks pay for calculating Redundancy Pay / Basic Award in Unfair Dismissal/ Recovery from DTI on insolvency £525£538
Maximum Compensatory Award for Unfair Dismissal (N.B. There is no upper limit in Whistleblowing and Health and Safety dismissal cases)The lower of £86,444 or a years payThe lower of £88,519 or a years pay
Failure to inform / consult - collective redundancyUp to 90 days actual payUp to 90 days actual pay
Failure to inform / consult - TUPE transferUp to 13 weeks actual payUp to 13 weeks actual pay
Failure to give s1 ERA particulars2-4 weeks pay (max £525 per week) 2 weeks pay (max £538 per week)
Breach of right to be accompanied2 weeks pay (max £525 per week) 2 weeks pay (max £538 per week)
minimum Basic Award for TU; H&S; Ee Rep and WTR cases£6408 £6562

 

It's important to remember that all workers must be paid at least the NMW as their basic pay rate. Where supplements are paid (for example, for working overtime or working at “unsocial” hours), these cannot be taken into account when calculating whether the NMW has been paid. 

 

 

 

 

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