Are you ready for the new employment rates and limits?

With April 2024 approaching, it is important that schools ensure they are ready for the annual increases to the employment rates and limits which are set to take effect.

From 1st April 2024, National Living Wage and National Minimum Wages rates will rise as follows:

  • National Living Wage, 21 and over: £11.44
  • 18-20 year old rate: £8.60
  • Under year 18 year old rate: £6.40
  • Apprentice rate: £6.40
  • Accommodation offset: £9.99

From 6th April 2024 Statutory Sick Pay will increase to a weekly rate of £116.75.

From 7th April 2024, Statutory Maternity Pay, Statutory Paternity Pay, Statutory Shared Parental Pay and Statutory Adoption Pay will increase to a weekly rate of £184.03 or 90% of the employee’s average income, whichever is lower.

There will be no changes to an employee’s personal allowance or income tax brackets.  

With the government announcing this year’s annual changes, there will be an increase in the limits that apply to compensation payments where employment is terminated. These new limits will apply to dismissals that take effect from 6th April 2024.

  • The cap on a week’s pay for the purposes of calculating a statutory redundancy payment or an unfair dismissal basic award will rise to £700.
  • The cap on an unfair dismissal compensatory award will rise to £115,115, or a year’s gross pay, whichever is lower.

If schools are contemplating dismissing a member of staff, where possible it would be sensible to ensure the dismissal takes effect prior to 6th April to avoid it being caught by the new limits.

How can Moore Barlow help

Should you need any further advice or support surrounding the 2024 employment rates and limits, our Independent schools law team would be more than happy to guide you through the process.