Update on employment payments and rates for 2026-2027
This page outlines the revised employment payments and rates for 2026-2027, from compensation limits to the Vento bands for injury to feelings awards.
Compensation limits
| These sums apply where the dismissal took place | On or after 6 April 2025 | On or after 6 April 2026 |
| A week’s pay for statutory purposes | £719 | £751 |
| Maximum unfair dismissal basic award (30 weeks) | £21,570 | £22,530 |
| Maximum unfair dismissal compensatory award (abolished for EDTs from 1 January 2027) | Lower of 52 weeks’ gross pay or £118,223 | Lower of 52 weeks’ gross pay or £123,543 |
National minimum wage hourly rates
| Type | From 1 April 2024 | From 1 April 2025 | From 1 April 2026 |
| National living wage (aged 21 and over) | £11.44 | £12.21 | £12.71 |
| Development rate (aged 18 to 20) | £8.60 | £10.00 | £10.85 |
| Young workers rate (aged 16 to 17) | £6.40 | £7.55 | £8.00 |
| Apprentices rate (under 19 years of age or those aged 19 and over but in first year of apprenticeship) | £6.40 | £7.55 | £8.00 |
Statutory weekly payments for leave
| Type of Pay | Length of time | From 6 April 2025 | From 6 April 2026 (SMP from 5 April 2026) |
| Sick pay (after three qualifying days’ absence) | for up to 28 weeks in period of incapacity | £118.75 | £123.25 or 80% of normal weekly wages, if lower |
| Maternity pay and adoption pay (first six weeks) | for 6 weeks | 90% of normal weekly wages | 90% of normal weekly wages |
| Prescribed rate for other statutory family leave | |||
| Maternity pay and adoption pay | for up to 33 weeks | £187.18 or 90% of normal weekly wages, if lower | £194.32 or 90% of normal weekly wages, if lower |
| Ordinary paternity pay and parental bereavement pay | for up to 2 weeks | £187.18 or 90% of normal weekly wages, if lower | £194.32 or 90% of normal weekly wages, if lower |
| Shared parental pay on birth | for up to 37 weeks | £187.18 or 90% of normal weekly wages, if lower | £194.32 or 90% of normal weekly wages, if lower |
| Maternity allowance and shared parental pay on adoption | for up to 39 weeks | £187.18 or 90% of normal weekly wages, if lower | £194.32 or 90% of normal weekly wages, if lower |
Other maximum payments
| Type | From 6 April 2025 | From 6 April 2026 |
| Guarantee payment (per day) | £39 | £41 |
| Guarantee payment (in any three month period) | £195 | £205 |
| Failure to inform or consult on collective redundancies | 90 days’ gross pay | 180 days’ gross pay |
| Failure to inform or consult on TUPE transfer | 13 weeks’ gross pay | |
| Breach of contract claim in employment tribunal | £25,000 | |
| Unlawful deductions and discrimination claims in employment tribunal | Unlimited |
Presidential Guidance on Vento bands for injury to feelings awards
| For claims presented | On or after 6 April 2024 | On or after 6 April 2025 | On or after 6 April 2026 |
| Lower band | £1,200 to £11,700 | £1,200 to £12,100 | £1,300 to £12,600 |
| Middle band | £11,700 to £35,200 | £12,100 to £36,400 | £12,600 to £37,700 |
| Upper band | £35,200 to £58,700 | £36,400 to £60,700 | £37,700 to £62,900 |
If you’re interested to learn more about how these rate changes may affect your organisation – and how we can help – get in touch with our employment solicitors today.
You can also contact our specialist, Andrew Knorpel at 07587 003316 and andrewknorpel@richardnelsonllp.co.uk
