Minimum wage rates

From 1 April 2021, national minimum wage rates will increase.

The new hourly rates are as follows:

  • Young workers rate for workers aged 16–17 – £4.62
  • Development rates for workers aged 18–20 – £6.56
  • Apprentices under 19, or over 19 and in first year of the apprenticeship – £4.30.
  • Workers aged 21-22 – £8.36
  • Workers aged 23 and over (National Living Wage) – £8.91
    The National Living Wage (NLW) threshold is being lowered to include all those aged 23 and over. Currently, the NLW is payable only to people who are aged 25 and over.

    Employment tribunal compensation awards and rates

    Employment tribunal compensation rates will go up from 6 April 2021. As of this date, the maximum week’s pay for redundancy pay purposes will increase from £538 to £544. Statutory guarantee pay will remain at £30.

    These new figures align maximum statutory redundancy pay, as well as unfair dismissal basic award pay to £16,320.

    The maximum amount of additional award for unfair dismissal, for employees who have employers who fail to follow tribunal instruction will rise to £28,288.

    Statutory Sick Pay

    Employers are liable for the payment of statutory sick pay (SSP) to eligible employees. The current rate is £95.85 per week, but this will increase to £96.35 from 6 April 2021.

    The lower earnings limit for eligibility for statutory payments will remain at £120 per week.

    Family leave

    The weekly rates of statutory family leave – which includes maternity and paternity leave will rise from £151.20 per week to £151.97 per week from 4th April 2021.


    The IR35 legislation is put in place to ensure contractors are paying the appropriate amount of tax. This also changes for some private sector businesses.

    At present, most contractors are required to determine their own status as an employee or contractor. From 6th April 2021 this liability will pass to medium and large-sector clients.

    Here at Versus Law, we understand how complicated employment law can be and we are here to help employees and employers get fair deals. Every member of our legal team is armed with the knowledge and expertise to overcome the hurdles of employer’s settlement negotiations and when necessary, to take matters to a Tribunal if you are an employee. For help with your employment law issue fill in our online enquiry form or call 0161 413 2093 for a free initial consultation.