News | March 14, 2019

New Limits – Update: National Living Wage, National Minimum Wage and Compensation Limits

The government has announced the new rates and limits which will be introduced from April 2019 in relation to the National Living Wage, National Minimum Wage and the employment compensation limits.

National Living Wage and National Minimum Wage

The new limits will come into force from 1 April 2019:

Category Current RateNew Rate
National Living Wage (workers aged 25 and over)£7.83£8.21
Standard Adult Rate (workers aged 21 to 24)£7.38£7.70
Development Rate (workers aged 18 to 20)£5.90£6.15
Young Workers Rate (workers aged under 18 but above the compulsory school age who are not apprentices)£4.20£4.35
Accommodation offset£7.00 each day / £49 per week£7.55 each day / £52.85 per week

Compensation Limits

The new limits will come into force in respect of terminations that take effect on after 6 April 2019.

CategoryCurrent rateNew rate
Limit on a week’s pay for the purpose of calculating statutory redundancy and the unfair dismissal basic award£508£525
Maximum basic award for unfair dismissal and statutory redundancy£15,240£15,750
Minimum basic award in cases where a dismissal is unfair by virtue of health and safety, employee representative, trade union, or occupational pension trustee reasons£6,203£6,408
Maximum compensatory award for unfair dismissal£83,682£86,444