Living Wage rise comes into force
The National Living Wage increased to £11.44 an hour for workers over 21 from the beginning of April.
It is the largest ever increase in the minimum wage in cash terms and for the first time it has been extended to 21 and 22-year-olds.
Almost three million people will benefit from the rise, according to the government and the Treasury has said that it will add more than £1,800 a year to the pay of those on full-time contracts.
Successive rises also mean a full-time worker on the National Living Wage is now more than £9,000 better off than in 2010.
The hourly rate for 18-20-year-olds has risen to £8.60. For 16-17-year-olds the new rate is £6.40 and for apprentices it is £6.40.
Alongside these, there have been increases in the statutory amount employees receive if they are off work due to sickness or where they are taking family related leave.
The changes mean that from April 6 statutory sick pay was increased to a weekly payment of £116.75.
From April 7 the statutory rates for maternity, paternity, shared parental, adoption and parental bereavement pay also rose, to a weekly payment of £184.03. And a day later maternity allowance increased to £184.03.
Maximum compensation limits have also risen. The limit on a week’s pay will increase to £700 from its current rate of £643. This is used to calculate statutory redundancy and other payments.
The maximum statutory redundancy payment has been increased to £21,000, with service capped at 20 years.
The maximum basic award for unfair dismissal has also risen to £21,000 and the maximum compensatory award for unfair dismissal has gone up to £115,115 – this only applies for dismissals that take effect from April 6.
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