We just wanted to draw your attention to some of the changes that come into effect from April 2026
National Minimum Wage
As part of the budget announcement, the government have confirmed the national minimum wage rates for the upcoming 2025/26 tax year. These rates are as follows:
- Age 21+ - £12.71 an hour
- Ages 18-20 - £10.85 an hour
- Aged under 18 - £8.00
- Apprentice Rate - £8.00
You are required by law to pay at least the national minimum wage, and therefore we will automatically increase the hourly rate of staff to the national minimum wage in April if required.
New Statutory Pay Rates from April 2026
The Lower Earning Limit (LEL) has increased from £125.00 to £129.00.
- Statutory Sick Pay
- £123.25 or 80% of average weekly earnings whichever is lower
- Statutory Adoption Pay
- 90% of average weekly earnings for first 6 weeks
- £194.32 or 90% of employees’ weekly earnings, whichever is lower.
- Statutory Maternity Pay
- 90% of average weekly earnings for first 6 weeks
- £194.32 or 90% of employees’ weekly earnings, whichever is lower.
- Statutory Neonatal Care Pay
- 194.32 or 90% of employees’ weekly earnings, whichever is lower.
- Statutory Paternity Pay
- 194.32 or 90% of employees’ weekly earnings, whichever is lower.
- Statutory Shared parental leave
- 194.32 or 90% of employees’ weekly earnings, whichever is lower.
- Statutory Parental Bereavement Pay
- 194.32 or 90% of employees’ weekly earnings, whichever is lower.
Should you want more information on the eligibility to these benefits and a full breakdown of the rates and thresholds for employers for 2026 to 2027 please do look at the HMRC website: https://www.gov.uk/guidance/rates-and-thresholds-for-employers-2026-to-2027
Employee’s Tax
Whilst the personal allowance rates for 2026/2027 tax year have not changed, some of your employees may receive a new tax code from April 2026.
Tax code changes can occur throughout the tax year, as HMRC send through notifications, so it is good practice to always check the payroll information each month and make sure you are paying your employees the correct NET pay every month.
We advise against setting up a standing order to make salary payments, as small variations are likely even when a tax code does not change.
Photo by Kampus Production
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