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As an employer, there are key employment law considerations to note and comply with. Importantly, your employees and workers will have different minimum entitlements and pay rates according to employment law in England and Wales (statutory rates of pay). The statutory rates of pay change every year in April and are relevant to all employers and employees alike. It is important to correctly pay your staff or risk breaking your legal obligations as an employer. This article outlines the national minimum wage in England and Wales and other minimum entitlements.
National Minimum Wage
The National Minimum Wage is payable to all employees and workers.
| Age | Rate of pay (per hour) for 2022/23 | Current rate of pay (per hour) from April 2023 until April 2024 |
| Workers aged 23 and over (National Living Wage) | £9.50 | £10.42 |
| Workers aged between 21-22 | £9.18 | £10.18 |
| Workers agreed between 18-20 | £6.83 | £7.49 |
| Workers under 18 | £4.81 | £5.28 |
| Apprentices* | £4.81 | £5.28 |
*Apprentices are entitled to the apprentice rate if they are either:
- aged 19 or under; or
- aged 19 or over in the first year of their apprenticeship
Apprentices who have completed the first year of their apprenticeship (and are over 19) are entitled to the national minimum wage/living wage, depending on their age.
Real Living Wage
The Real Living Wage is the only wage rate in the UK that is based on real living costs.
| Age | Rate of pay (per hour) for 2022/23 | Current rate of pay for 2023/2024 |
| Workers aged 25 and over (and outside of London) | £10.90 | £12.00 |
| Workers aged 25 and over (and in London) | £11.95 | £13.15 |
It is voluntary to pay your employees according to the real living wage. Businesses can choose to provide financial remuneration that is above the National Minimum Wage/National Living Wage implemented by the Government.
Sick Pay
To be eligible for statutory sick pay, an individual must:
- be an employee and have done some work for you (as their employer);
- earn at least the lower earnings limit (per week)
- have been ill for at least 4 days in a row (including non-working days).
| Payment | Rate of pay (per week) for 2022/23 | Current rate of pay (per week) until April 2024 |
| Statutory sick pay | £99.35 | £109.40 |
| Lower earnings limit (per week) | £123 | £123 |
Bank Holidays 2024 (England and Wales)
All employees and workers are legally entitled to a minimum of 28 days paid holiday a year, which is often referred to as annual leave. An employer can include bank holidays as part of this entitlement, but this is not mandatory. You would need to give a pro-rata equivalent to staff who work part-time. Additionally, you can offer more leave than the legal minimum.
| Bank Holiday | Date |
| New Year's Day | 1 January 2024 |
| Good Friday | 29 March 2024 |
| Easter Monday | 1 April 2024 |
| Early May Bank Holiday | 6 May 2024 |
| Spring Bank Holiday | 27 May 2024 |
| Summer Bank Holiday | 26 August 2024 |
| Christmas Day | 25 December 2024 |
| Boxing Day | 26 December 2024 |
The right to paid holidays applies to agency workers, casual workers and employees.
Family Friendly Payments
| Payment | Rate of pay for the first 6 weeks | Rate of pay for the remaining 33 weeks | Rate of pay (per week) for 2022/23 | Current rate of pay (per week) from until April 2024 |
| Statutory maternity pay | 90% of the employee's normal weekly earnings | 90% of the employee's normal weekly earnings or the statutory rate, whichever is lower. | £156.66 | £172.48 |
| Statutory adoption pay | 90% of the employee's normal weekly earnings. | 90% of the employee's normal weekly earnings or the statutory rate, whichever is lower. | £156.66 | £172.48 |
Other Family Friendly Payments
| Payment | Rate of pay (per week) for 2022/23 | Current rate of pay (per week) until April 2024 |
| Statutory paternity pay | £156.66 (up to 2 weeks statutory pay or 2 weeks' pay which is 90% of the employee's normal weekly earnings, whichever is lower) | £172.48 |
| Statutory parental bereavement pay | £156.66 (up to 2 weeks statutory pay or 2 weeks' pay which is 90% of the employee's normal weekly earnings, whichever is lower) | £172.48 |
| Statutory shared parental leave pay | £156.66 (or 90% of the normal weekly earnings of the person claiming shared parental pay, whichever is lower) | £172.48 |
Typically, family friendly payments and other family friendly payments are only payable to employees. However, the definition of 'employee' for these payments is wider than the standard definition in the Employment Rights Act 1996. Therefore, those with worker status may be eligible.
Key Takeaways
Understanding the legal entitlements of your employees and workers is crucial. If you fail to do so, you risk underpaying your staff and opening yourself to legal consequences. Some minimum entitlements you must provide to your employees and workers include:
- paying them according to the National Minimum Wage (or Real Living Wage if you elect to do so);
- providing sick pay;
- providing paid holidays; and
- complying with family friendly payments.
