Each year, the Government reviews statutory payment rates, and from April 2026 a number of key increases come into effect.
For employers, this is not simply an administrative update. It requires careful review of payroll, contracts and internal processes to ensure compliance and avoid underpayment risk.
Below is a summary of what is changing and what action you should take.
National Living Wage and National Minimum Wage – From 1 April 2026
From 1 April 2026, updated rates apply to:
- National Living Wage (for workers aged 21 and over)
- National Minimum Wage (for workers under 21)
These changes apply to anyone on your payroll who is paid at, or close to, the current NLW/NMW rates.
Key considerations for employers:
- Ensure payroll systems are updated in time for April pay.
- Check that employees currently paid slightly above the old rate do not fall below the new threshold.
- Remember that when an employee has a birthday that moves them into a higher age bracket, the increased rate applies from that birthday.
- Confirm apprentice rates where applicable.
We have prepared a template letter you can use to notify employees of the increase in their April pay. If you require support generating these for your team, we are happy to assist.
Other Statutory Rate Increases – From 6 April 2026
From 6 April 2026, other statutory payments will increase, including:
- Statutory Sick Pay (SSP)
- Statutory Maternity Pay (SMP)
- Statutory Paternity Pay (SPP)
- Statutory Adoption Pay (SAP)
- Shared Parental Pay
Important Change: SSP Now Payable From Day One
The three-day waiting period for Statutory Sick Pay has been abolished. SSP is now payable from the first day of absence.
This change alone may have cost implications for businesses with higher short-term absence levels, so payroll and absence policies should be reviewed accordingly.
Why This Matters
Underpayment of National Minimum Wage is one of the most common compliance risks for UK employers. Errors can lead to:
- Back pay liabilities
- Financial penalties
- Public naming by HMRC
- Reputational damage
Annual statutory increases are a routine part of employment law, but the risk arises when systems are not reviewed thoroughly.
What Should You Do Now?
We recommend that employers:
- Review payroll settings
- Audit hourly rates across age brackets
- Check birthday-triggered increases
- Update absence policies in light of Day 1 SSP
- Communicate changes clearly to affected employees
If you would like support reviewing your payroll compliance or issuing employee communications, please book a free consultation here.
Proactive review now avoids problems later.
