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Statutory rates

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Overview

In this section, we outline the key statutory rates and figures that employers need to know, as well as information on historical rates. 

Key points 

  • Most key rates are reviewed every year and in most cases they are increased. 
  • The dates on which different employment related rates increase, such as family friendly statutory pay (eg maternity, adoption etc), statutory sick pay and national minimum / living wage, are usually different and so care must be taken to only apply a new rate once it is in force. Typically, these are all around the beginning of April each year. 
  • Unless indicated otherwise, these rates apply in England, Scotland and Wales. 
Compensation limits
Payments                                                 From 6 April 2022 From 6 April 2023
Limit on guarantee payments £31 £35
Limit on a week's pay for calculating redundancy and unfair dismissal basic award £571 £643
Maximum basic award for unfair dismissal and statutory redundancy payment (30 weeks' pay subject to the limit on week's pay) £17,130 £19,290
Minimum basic award for dismissal on trade union, health and safety, occupational pension scheme trustee, employee representative and on working time grounds only £6,959 £7,836
Maximum award for unlawful inducement relating to trade union membership or activities, or collective bargaining £4,554 £5,128
Maximum compensatory award for unfair dismissal - subject to a maximum cap of a year's pay  £93,878 £105,707
Minimum compensation for employees excluded/expelled from trade union £10,628 £11,967
Contract claims (if a claim for breach of contract (eg wrongful dismissal) is brought in an employment tribunal, compensation is capped at £25,000. If the claim is for more than £25,000, it can be made in the county court or high court £25,000 £25,000

These rates are reviewed and updated annually each April.

Please note these apply only in England, Scotland and Wales.

More information: 

Additional award

In unfair dismissal cases where the employer fails to comply with an order to reinstate or re-engage an employee, an additional award may be made. The minimum this will be is the lower of 26 week's pay (subject to the statutory cap) or the minimum figure in the 'minimum' column below, and the maximum it could be is the lower of 52 weeks' pay or the figure in the 'maximum' column below. 

 

Minimum

Maximum

6 April 2023 - 5 April 2024 £16,718 £33,436

6 April 2022 - 5 April 2023

£14,846

£29,692

 

Injury to feelings compensation awards
Vento bands Claims presented on or after 6 April 2022 Claims presented on or after 6 April 2023
Lower band £990 to £9,900 £1,100 to £11,200
Middle band £9,900 to £29,600 £11,200 to £33,700
Upper band £29,600 to £49,300 £33,700 to £56,200

Only in exceptional cases will compensation awards for injury to feelings exceed the upper band. 

Family-friendly payments
Payments From 2 April 2023 From April 2024 (proposed)
Statutory shared parental pay (ShPP)
Statutory rate or 90% of employee's weekly earnings if this is lower.
£172.48 £184.03
Statutory maternity pay (SMP)
First six weeks – 90% of employee's average weekly earnings.                                                  Remaining weeks at the statutory rate or 90% of employee's weekly earnings if this is lower.
£172.48 £184.03
Statutory adoption pay (SAP)
First six weeks – 90% of employee's average weekly earnings.
Remaining weeks at the statutory rate or 90% of employee's weekly earnings if this is lower.
£172.48 £184.03
Statutory paternity pay (SPP)
Statutory rate or 90% of employee's weekly earnings if this is lower.
£172.48 £184.03
Statutory parental bereavement pay (SPBP)                                                                                    Statutory rate or 90% of employee's weekly earnings if this is lower £172.48 £184.03

These rates are reviewed annually; any changes come into effect each April. In November 2023, the Government proposed to increase key statutory rates from April 2024. These increases remain proposals for now; confirmation is awaited. Whilst the Government could amend the proposals, that is highly unlikely.

These rates are reviewed annually; any changes come into effect each April. 

In order to qualify for these payments, workers must earn over the lower earnings limit

More information: 

Statutory sick pay
Payment From 6 April 2023 From April 2024 (proposed)
Statutory sick pay £109.40 £116.75
Lower earnings limit (per week) £123 £123
 
These rates are reviewed and updated annually each April.
 
In November 2023, the Government proposed to increase the rate of SSP. This increase remains a proposal for now; confirmation is awaited. Whilst the Government could amend the proposal, that is highly unlikely.

 
More information: Sick leave and pay.
 
 
National minimum wage
Age Rate from 1 April 2023 Rate from 1 April 2024
Workers aged 23 and over (NLW) £10.42 -
Workers aged 21-22 £10.18  -
National Living Wage for workers aged 21 and over - £11.44
National minimum wage for workers aged 18-20 £7.49  £8.60
Young workers rate for workers aged 16-17 £5.28  £6.40
Apprentices under 19, or over 19 and in the first year of the apprenticeship £5.28  £6.40
 
Accommodation offset 2023- 2024 2024- 2025
Daily rate £9.10 £9.99
Weekly rate £63.70 £69.93
 
These rates are reviewed annually, and any changes apply from each April.

From 1 April 2024, the National Living Wage (NLW) will be applied for this first time to those aged 21 and over. It will also achieve the target first set by the Government in 2019 – the NLW will be equal to two-thirds of median hourly pay for those aged 21 and over.

This is the largest ever increase in the minimum wage in cash terms and the first time it has increased by more than £1..

More information: National minimum wage
Real living wage (voluntary)
  London Living Wage UK Living Wage
2022/23 £11.95 an hour £10.90 an hour 
2023/24 £13.95 an hour £12.00 an hour
 
These rates are reviewed and updated annually each November. Employers signed up to the scheme have 6 months to implement the increase. 
 
The rates for 2023/24 were announced on 24 October 2023. Employers now have until 1 May 2024 to implement these. 
 
More information: Voluntary living wage.

 

Minimum auto-enrolment contributions

Timing    

Minimum total percentage to be paid into pension

Minimum employer contribution Minimum employee contribution

6 April 2018 – 5 April 2019

5 per cent

2 per cent 3 per cent

6 April 2019 onwards

8 per cent

3 per cent 5 per cent
Disclosure and barring fees
 
Check Fee
Basic DBS check £23
Enhanced DBS check £40
Standard DBS check £23
DBS adult first check £6
Registration application £300
Countersignatory £5
Update service (annual) £13

More information: Vetting and barring
National insurance contribution thresholds
 
£ per week (unless stated) 2022 - 2023 2023 - 2024
Lower earnings limit, p primary Class 1 £123 £123
Upper earnings limit, primary Class 1 £967 £967
Upper secondary threshold for under 21s (from April 2015) £967 £967
Primary threshold £190 £242
Secondary threshold £175 £175
Class 2 rate £3.15 £3.45
Small earnings exception (replaced by Small profits threshold from 6 April 2015) £6,725 £6,725
Special Class 2 rate for volunteer development workers £6.15 £6.15
Class 3 rate £15.85 £17.45
Class 4 rate lower profits limit £9,880 £12,570
Class 4 rate upper profits limit £50,270 £50,720
 
These rates are reviewed and updated annually each April.