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National Minimum Wage and Compensation Pay Increases

It’s approaching that time of year again when we will see an increase in the national minimum wage rates and an increase in the weeks’ pay cap which is relevant for calculating statutory redundancy payments and compensation in employment tribunal claims.

New National Minimum Wage Rates

From 1 April 2017, the following rates will apply:

  •      £7.50 per hour - 25 year olds and over
  •      £7.05 per hour - 21-24 year olds
  •      £5.60 per hour - 18-20 year olds
  •      £4.05 per hour - 16-17 year olds
  •      £3.50 for apprentices under 19 or 19 or over who are in the first year of apprenticeship

New National Living Wage

From 1 April 2017, the National Living Wage will rise from £7.20 per hour to £7.50 per hour

Statutory compensation increases

From 6 April 2017, a week’s pay will rise from £479 to £489 and the maximum compensatory award for employment tribunal claim purposes will rise to the lesser of a years’ pay or £80,541.

The new weeks’ pay cap will be an important and indeed, costly change for employers who are intending to make redundancies which take effect from or after 6 April 2017 and who will make statutory redundancy payments.



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Annie Gray


Primarily acting for employers and senior executives, Annie advise PLC's, private limited companies,…

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