National Minimum Wage and Statutory Pay Rates

The National Minimum Wage (Amendment) Regulations 2018 introduced the following changes to the National Living Wage (NLW) and the National Minimum Wage (NMW) rates with effect from 1 April 2018:

  • The NLW, which applies to those aged 25 and over, increased from £7.50 to £7.83 per hour;
  • The NMW for 21- to 24-year-olds increased from £7.05 to £7.38 per hour;
  • The NMW for 18- to 20-year-olds increased from £5.60 to £5.90 per hour;
  • The NMW for 16- and 17-year-olds increased from £4.05 to £4.20 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, increased from £3.50 to £3.70 per hour.

The accommodation offset increased from £6.40 to £7.00 per day for each day during the pay period that accommodation is provided.

New Rates of Statutory Pay for Parents

From 1 April, the rates for Statutory Maternity Pay (SMP), Statutory Paternity Pay (SPP), Statutory Shared Parental Pay (ShPP) and Statutory Adoption Pay (SAP) increased from £140.98 to £145.18.

Statutory Sick Pay

The weekly Statutory Sick Pay (SSP) rate for days of sickness absence increased from £89.35 to £92.05 with effect from 6 April 2018.

In addition, the lower earnings limit applying to National Insurance Contributions, below which employees are not entitled to SMP, SPP, ShPP, SAP or SSP, increased from £113 to £116 per week for the tax year 2018/2019.

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