- National Living Wage
National Living Wage for workers aged 25 increased to £7.83 per hour. The national minimum wage (NMW) rates are now:
- from £7.05 to £7.38 for 21 to 24 year olds
- from £5.60 to £5.90 for 18 to 20 year olds
- from £4.05 to £4.20 for 16 and 17 year olds
- from £3.50 to £3.70 for apprentices.
- 1 April 2018
New statutory rates
Statutory Maternity Pay, Statutory Paternity Pay, Shared Parental Pay and Statutory Adoption Pay increased to £145.18 per week.
- 4 April 2018
Gender pay gap reporting for private sector employers
Private sector employers must publish first reports before this date (with a snapshot date of 5 April 2017).
- 6 April 2018
Statutory sick pay
Statutory Sick Pay increased to £92.05 per week.
- 6 April 2018
Taxation of termination payments
Changes to the way in which termination payments are taxed came into force on 6 April 2018.
New rules will apply to any termination of employment that takes place on or after 6 April 2018 whereby all notice pay is to be treated as earnings and subject to tax and national insurance contributions – irrespective of whether or not there is a pay in lieu of notice clause (PILON) in the employment contract.
For these purposes, the amount of notice pay may need to be calculated pursuant to a specific formula set out in statute, so it may not be as straightforward as simply operating a contractual PILON. For a termination of employment that takes place before 6 April 2018 the old rules will apply (even if the termination payment is paid after this date).
- 6 April 2018
A week’s pay
The maximum amount for a week’s pay (used to calculate statutory redundancy payments) increased to £508 per week (from £489 per week). This increase is of particular relevance to those making redundancies on or after 6 April 2018.
- 6 April 2018
Maximum compensatory award
The maximum compensatory award for unfair dismissal increased to £83,682 (from £80,541) where the termination is on or after 6 April 2018.