Every April, various employment law payment rates are updated, and it’s crucial for employers to stay informed and implement these changes to remain compliant.

These updates typically include increases to minimum wage rates, statutory pay entitlements, and other key employment-related payments.

To help you navigate these changes, we’ve provided a summary of the most important updates below. For a comprehensive breakdown of all rate adjustments and policy changes, you can read our detailed Employment Essentials guide.

From 1 April 2026

Increase in National Minimum Wage

  • Aged 21 and over (“The National Living Wage) will increase from £12.21 to £12.71
  • Workers aged 18-20 rate will increase from £10.00 to £10.85
  • Workers aged 16-17 rate will increase from £7.55 to £8.00
  • Apprentice rate (apprentices under 19 or ages 19 or over and in the first year of apprenticeship) will increase from £7.55 to £8.00

From 6 April 2026

Increase in Tribunal Award

  • The maximum compensatory award for unfair dismissal will increase from £118,223 to £123,543 (or 52 weeks’ gross pay, whichever is lower).
  • The limit on a week’s pay will increase from £719 to £751. This means that the maximum basic award for unfair dismissal and the maximum statutory redundancy payment will each rise from £21,570 to £22,530.

Increase in Statutory Rates

  • Statutory maternity, paternity, adoption, shared parental, neonatal care and parental bereavement pay will increase from £187.18 to £194.32 per week, effective from 6 April 2026. Payable at the prescribed rates or 90% of the employee’s average weekly earnings, whichever is lower.
  • Statutory sick pay will increase from £118.75 to £123.25 per week or 80% of the employee’s average weekly earnings, whichever is lower, effective from 6 April 2026.

Prism services for employment law

Keeping up with employment law changes can be challenging, but our fixed fee Prism service offers expert support to ensure you stay informed and compliant. From wage updates to wider employment law matters, we help you navigate the complexities clearly and with confidence.

If you’d like to discuss any of the recent changes or need practical, tailored advice, our dedicated employment team is here to help.