Update on employment payments and rates for 2025-2026
This page outlines the revised employment payments and rates for 2025-2026, 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 2024 | On or after 6 April 2025 |
| A week’s pay for statutory purposes | £700 | £719 |
| Maximum unfair dismissal basic award (30 weeks) | £21,000 | £21,570 |
| Maximum unfair dismissal compensatory award | Lower of 52 weeks’ gross pay or £115,115 | Lower of 52 weeks’ gross pay or £118,223 |
National minimum wage hourly rates
| Type | From 1 April 2023 | From 1 April 2024 | From 1 April 2025 |
| National living wage (aged 23 and over) | £10.42 | £11.44 | £12.21 |
| Standard rate (aged 21 to 22) | £10.18 | £11.44 | £12.21 |
| Development rate (aged 18 to 20) | £7.49 | £8.60 | £10.00 |
| Young workers rate (aged 16 to 17) | £5.28 | £6.40 | £7.55 |
| Apprentices rate (under 19 years of age or those aged 19 and over but in first year of apprenticeship) | £5.28 | £6.40 | £7.55 |
Statutory weekly payments for leave
| Type | Length of time | From 7 April 2024 | From 6 April 2025 |
| Sick pay (after three qualifying days’ absence) | for up to 28 weeks in period of incapacity | £116.75 | £118.75 |
| 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 | Prescribed rate for other statutory family leave | £116.75 | |
| Maternity pay and adoption pay | for up to 33 weeks | £184.30 or 90% of normal weekly wages, if lower | £187.18 or 90% of normal weekly wages, if lower |
| Ordinary paternity pay and parental bereavement pay | for up to 2 weeks | £184.30 or 90% of normal weekly wages, if lower | £187.18 or 90% of normal weekly wages, if lower |
| Shared parental pay on birth | for up to 37 weeks | £184.30 or 90% of normal weekly wages, if lower | £187.18 or 90% of normal weekly wages, if lower |
| Maternity allowance and shared parental pay on adoption | for up to 39 weeks | £184.30 or 90% of normal weekly wages, if lower | £187.18 or 90% of normal weekly wages, if lower |
Other maximum payments
| Type | From 6 April 2024 | From 6 April 2025 |
| Guarantee payment (per day) | £38 | £39 |
| Guarantee payment (in any three month period) | £190 | £195 |
| Failure to inform or consult on collective redundancies | 90 days’ gross pay | 90 days’ gross pay |
| Failure to inform or consult on TUPE transfer | 13 weeks’ gross pay | 13 weeks’ gross pay |
| Breach of contract claim in employment tribunal | £25,000 | £25,000 |
| Unlawful deductions and discrimination claims in employment tribunal | Unlimited | Unlimited |
Presidential Guidance on Vento bands for injury to feelings awards
| For claims presented | On or after 6 April 2023 | On or after 6 April 2024 | On or after 6 April 2025 |
| Lower band | £1,100 to £11,200 | £1,200 to £11,700 | £1,200 to £12,100 |
| Middle band | £11,200 to £33,700 | £11,700 to £35,200 | £12,100 to £36,400 |
| Upper band | £33,700 to £56,200 | £35,200 to £58,700 | £36,400 to £60,700 |
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.
