Statutory figures increase - the minimum wage and statutory limits

National minimum wage

The currently draft Minimum Wage (Amendment) Regulations 2017 will come into effect on 1 April 2017.

Regulation 2(2) increases the rate of the national minimum wage for workers who are aged 25 or over (“the national living wage rate”) from £7.20 to £7.50 per hour

Regulation 2(3)(a) increases the rate of the national minimum wage for workers who are aged 21 or over (but not yet aged 25) from £6.95 to £7.05 per hour

Regulation 2(3)(b) increases the rate for workers who are aged 18 or over (but not yet aged 21) from £5.55 to £5.60 per hour

Regulation 2(3)(c) increases the rate for workers who are under the age of 18 from £4.00 to £4.05 per hour

The apprenticeship rate applies to workers within regulation 5(1)(a) and (b) of the 2015 Regulations. Regulation 2(3)(d) of these Regulations increases the rate for such workers from £3.40 to £3.50 per hour.

Regulation 2(4) increases the accommodation amount which is applicable where any employer provides a worker with living accommodation from £6.00 to £6.40 for each day that accommodation is provided 

Increase to statutory limits

The Employment Rights (Increase of Limits) Order 2017 SI 2017/175 has been laid before Parliament increasing compensation limits for actions on or post 6 April 2017. Changes include:

·         the cap on a week’s pay for statutory payments such as redundancy payments and the basic award for unfair dismissal, increases from £479 to £489

·         the limit on compensatory award in unfair dismissal cases increases from £78,962 to £80,541

·         guarantee pay increases from £26 to £27 per day