Employment law rate changes in April 2026

A number of proposed employment law rate changes came into force in April 2026.  These include:

01 April 2026

• The national living wage (for workers aged 21 and over) increased from £12.21 per hour to £12.71 per hour.

• The standard minimum wage rate for younger workers (aged 18 to 20) rose from £10 to £10.85 per hour.

5 April 2026

• Statutory maternity pay increased from £187.18 to £194.32 per week.

06 April 2026

• The limit on compensation for unfair dismissal increased to the lower of £123, 543 (up from £118,223) and one year's pay.

• The limit on a week's pay used for calculating statutory redundancy pay (and the unfair dismissal basic award) will increase from £719 to £751.

It is also worth noting that, subject to the relevant statutory instrument being passed and the commencement date being confirmed, the cap on the compensatory award for unfair dismissal (currently £123,543) is set to be abolished for dismissals occurring on or after January 2027. The week's pay for the basic award and statutory redundancy payments, will remain in force.

Further detail on other compensation limit increases is available here.

6 April 2026

Statutory sick pay  increased from £118.75 to £123.25 per week.

Statutory maternity, adoption, paternity, shared parental, neonatal care and parental bereavement pay will increase from £187.18 to £194.32 per week.

Full details of all anticipated employment law changes are available here.