New wage increases and statutory pay changes for 2024

The new financial year has already started, which means new changes to payslips for some people. Navigating these details can be complex, but we're here to break down the key updates you need to know.

National Living Wage and National Minimum Wage Increase

If you're on the National Living Wage or National Minimum Wage, you're in for a pay boost starting 1st April 2024. Here's the breakdown:

  • National Living Wage (21+): Up to £11.44 per hour
  • National Minimum Wage (18-20): Up to £8.60 per hour
  • National Minimum Wage (16-17): Up to £6.40 per hour
  • Apprentice Rate: Still £6.40 per hour

Statutory Sick Pay

Statutory Sick Pay is increasing to £116.75 per week, starting 6th April 2024. This means you'll receive more financial support if you need time off work due to illness, making it easier to manage your expenses during periods of sickness.

Statutory pay rates for maternity, paternity, adoption pay, shared parental and bereavement leave

These are going up to £184.03 per week. This means individuals will receive higher financial support during significant life events, offering much-needed assistance during these crucial times.

Statutory Redundancy Pay and basic award for unfair dismissal

No one wants to face a job loss, but if it happens, the maximum redundancy pay and basic award for unfair dismissal are both increasing. These should provide a bit more cushion during uncertain times.

The maximum statutory redundancy payment an employee can receive will increase to £21,000.

The maximum basic award for an unfair dismissal claim will also increase to £21,000.

When calculating an employee’s statutory redundancy entitlement, the maximum gross weekly pay will increase from £643 to £700.

Statutory cap on compensatory awards for unfair dismissal

The statutory cap on compensatory awards for unfair dismissal claims will increase from £105,707 to £115,115.

Injury to feelings in discrimination claims

From 6 April 2024, the values of the three “Vento” bands used to assess an employee’s injury to feelings as a result of discrimination in the workplace will increase and is shown in the table below.

Vento Band Claims issued 6 April 2023 - 5 April 2024 Claims issued 6 April 2024 - 5 April 2025
Lower band (less serious cases, such as where the act of discrimination is an isolated or one-off occurrence) £1,100 – £11,200 £1,200 – £11,700
Middle band (serious cases, which do not merit an award in the highest band) £11,200 – £33,700 £11,700 – £35,200
Top band (the most serious cases, such as where there has been a lengthy campaign of discriminatory harassment) £33,700 – £56,200 £35,200 – £58,700

Changes to Statutory Limits on Employee Compensation

From April 6, 2024 onwards, the legal maximum on a week's gross pay will go up. This means that if an employer fails to give an employee a written statement detailing the terms and conditions of their job, they could face higher penalties.

With this change, the limit on compensation for two weeks' pay will rise to £1,400 from its previous level of £1,286. Similarly, the limit on compensation for four weeks' pay will increase to £2,800 from £2,572.

Furthermore, if an employer breaches an employee's right to be accompanied to a grievance or disciplinary hearing, the maximum compensation of two weeks' pay will also increase accordingly.

You deserve to know your rights and be treated fairly in the workplace. If you have any questions or need clarification, don't hesitate to reach out to us.