Compensation Limits and National Minimum Wage Increases

Minimum Wage and Compensation

From 6 April 2017 for dismissals or other claims giving rise to compensation the maximum gross weekly pay that can be used in calculating the basic award for unfair dismissal and statutory redundancy pay increased from £479.00 to £489.00 per week and the maximum amount of the compensatory award was increased from £78,962.00 to £80,541.00.

From 1 April 2017 onwards the following increases to the national minimum living wage and national minimum wage took effect:-

  • For workers aged 25 and over – from £7.20 to £7.50 per hour;
  • For workers aged between 21 and 24 – from £6.96 to £7.05 per hour;
  • For workers aged between 18 and 20 – from £5.55 to £5.60 per hour;
  • For workers aged under 18 – from £4.00 to £4.05 per hour;
  • For apprentices – from £3.40 to £3.50 per hour; and
  • The amount deductible where an employer provides a worker with living accommodation – from £6.00 to £6.40 per day.

If you are an employer or an employee and require advice relating to compensation or the national minimum wage or any other employment matters please contact Glyn Evans on 01934 637911 or email evans@powellslaw.com

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