Minimum Wage & Tribunal Award Increases

Minimum Wage Increase
The National Minimum Wage (Amendment) Regulations 2018 have been laid before parliament.

They provide for the annual increase to the minimum wage and national living wage with effect from 1 April 2018 as follows:

  • 25+ – £7.83 (previously £7.50)
  • 21-24 – £7.38 (previously £7.05)
  • 18-20 – £5.90 (previously £5.60)
  • <18 – £4.20 (previously £4.05)
    The accommodation offset will be £7.00 per day (previously £6.40).

Tribunal Awards Increase
The Employment Rights (Increase of Limits) Order 2018 has also been laid before parliament and comes into force on 6 April 2018.

It contains the normal annual increases to maximum and minimum tribunal awards.

Key increases are:

  • Maximum week’s pay (for redundancy payments and the unfair dismissal basic award): £508 (currently £489)
  • Maximum compensatory award for unfair dismissal: £83,682 (currently £80,541).

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