National Minimum Wage and Statutory Pay Rates

National Minimum Wage Rates

The Government has accepted the recommendations of the Low Pay Commission as regards the National Living Wage (NLW) and the National Minimum Wage (NMW) rates that will apply with effect from 1 April 2019:

  • The NLW, which applies to those aged 25 and over, will increase from £7.83 to £8.21 per hour;
  • The NMW for 21- to 24-year-olds will increase from £7.38 to £7.70 per hour;
  • The NMW for 18- to 20-year-olds will increase from £5.90 to £6.15 per hour;
  • The NMW for 16- and 17-year-olds will increase from £4.20 to £4.35 per hour; and
  • The apprentice rate of the NMW, which applies to apprentices aged under 19 or those aged 19 or over and in the first year of their apprenticeship, will increase from £3.70 to £3.90 per hour.

The accommodation offset will increase from £7.00 to £7.55 per day for each day during the pay period that accommodation is provided.

Rates of Statutory Pay for Parents

From April 2019, the rates for Statutory Maternity Pay (SMP), Statutory Paternity Pay (SPP), Statutory Shared Parental Pay (ShPP) and Statutory Adoption Pay (SAP) will increase from £145.18 to £146.68.

Statutory Sick Pay

The weekly Statutory Sick Pay (SSP) rate for days of sickness absence will increase from £92.05 to £94.25.

In addition, the lower earnings limit applying to National Insurance Contributions, below which employees are not entitled to SMP, SPP, ShPP, SAP or SSP, will increase from £116 to £118 per week for the tax year 2019/20.

The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article.