2021 Statutory Payments and Compensation Limits

The limits of statutory payments and compensation will increase in April, as they do every year and like many, you may be interested to know how this will affect you.

Minimum Wage

Firstly, let’s discuss minimum wage. Firstly, from April the age that employers are entitled to a national living wage has dropped from 25 to 23 years old. The oldest bracket, people aged 23 and over, should now receive a minimum of £8.91 per hour. This is an increase of 19 pence from the previous year. People aged between 21 and 22 should receive at least £8.36 per hour with an increase of 16 pence from the previous year and 16 to 17 year olds should receive an hourly minimum of £4.62 (up 7 pence from year before).    

People working as an apprentice should receive a minimum of £4.30 per hour, a rise of 15 pence from the previous year. 

Statutory Payments 

Family payments, such as those relating to maternity, paternity, adoption and shared parental leave have increased this year, as well.  Where before the max payment for these was £151.20, it has now increased to £151.97 per week with an increase of 77 pence. 


Max statutory redundancy pay limits have increased to £16,320 a year, or £544 per month, with a rise of 18 pence for the year. These payments are usually given to employees who have worked for their employers for more than 2 years. 

Compensation for unfair dismissal has increased this year, also. Automatically unfair dismissal basic awards are now capped at £6634 an increase of £72 from 2020. In addition, unfair dismissal compensatory awards, which are given to those to compensate money lost from an unfair dismissal from employment, are now capped at £89,493, an increase of £974 from 2020.

Award for breach of right to be accompanied has increased to £1088, with an increase of £8 from last year. Compensation here covering two weeks of pay. 

The award for failure to reinstate/ reingage, last year, was between £13,988 and £27,976 but is now between £14,144 and £28,288 and the award for failure to provide employment contract was previously between £1076 and £2152 but now is between £1088 and £2176.