Every April, various increases are made to the national minimum and living wage, Tribunal awards and other statutory payments, including sick pay, family leave and redundancy pay. This year also sees important developments specific to Northern Ireland, including the introduction of paid miscarriage leave, as well as UK wide reforms to Statutory Sick Pay following the introduction of the Employment Rights Act 2025. In this article, Senior Solicitor Philippa Herron outlines the updated rates, the implications for employers, and the practical steps organisations should take to ensure compliance in the months ahead.
National Minimum Wage and Living Wage Increases
The National Minimum Wage and Living Wage increased from 01 April 2026. The new National Minimum Wage (for those aged 16 to 21) and National Living Wage (for those aged 21 and over) rates apply for eligible workers in the UK.
Below we outline the previous minimum wage rates and new rates as of 01 April 2026:
National Living Wage (NLW) for workers 21 and over
Rate from 01 April 2025: £12.21 per hour
Rate from 01 April 2026: £12.70 per hour
18-20 year old rate (NMW)
Rate from 01 April 2025: £10.00 per hour
Rate from 01 April 2026: £10.85 per hour
16-17 year old rate (NMW)
Rate from 01 April 2025: £7.55 per hour
Rate from 01 April 2026: £8.00 per hour
Apprentice Rate
Rate from 01 April 2025: £7.55 per hour
Rate from 01 April 2025: £8.00 per hour
It is important to remember that non-compliance with minimum wage law can have serious consequences for employers, including public naming and shaming, as well as significant financial penalties. Figures released in March 2026, highlighted that 23 Northern Irish companies failed to pay workers the minimum wage. Therefore, it is important to check that your business is compliant with the current rates before they are publicly named and shamed.
Increases to Statutory Rates for Family Leave
The statutory rates of pay that apply to the different types of family leave, such as Maternity, Paternity, Shared Parental, Adoption and Parental Bereavement, will increase from 05 April 2026.
The rates will increase from £187.18 to £194.32 per week.
Paid Miscarriage Leave
Northern Ireland will become the first region of the UK to introduce specific statutory miscarriage leave, extending the existing parental bereavement leave framework to cover pregnancy loss before the end of the 24th week.
Eligible employees, including partners and others meeting defined relationship criteria, will be entitled to two weeks’ leave within 56 weeks of the miscarriage, with statutory pay, as set out above, available as a day one right. The definition of miscarriage covers spontaneous loss and loss following specified medical interventions (including ectopic and molar pregnancies), with the entitlement applying in each instance. It is important employers note no medical evidence is required, a self declaration will suffice.
The Department for the Economy aims to have the regulations in place by 06 April 2026, from which date eligible employees will be able to claim immediately.
This is an NI specific right, GB will introduce miscarriage leave in 2027 under the Employment Rights Act 2025, but this will be unpaid.
Reforms to Statutory Sick Pay (SSP)
Due to SSP not being a devolved matter, following the introduction of the Employment Rights Act 2025 in GB there will be significant reforms to SSP which applies UK wide.
The 3 key changes are as follows:
- Removal of the Lower Earnings Limit (LEL)
SSP will no longer require employees to earn at least £125 per week to qualify.
- SSP will be payable from day 1
SSP will start from the first day of sickness absence. The current period of three “waiting days” will no longer apply.
- New calculation method
Employers will pay the lower of 80% of the employee’s average weekly earnings, or the new flat rate (£123.25 per week).
This replaces the current flat‑rate‑only system which sees eligible employees receive £118.75 per week.
In preparation for the reforms to SSP NI employers should:
- Review and update sickness absence policies to remove references to waiting days and the lower earnings limit and to reflect the new SSP entitlement from day one.
- Check payroll systems are ready to apply the new calculation method.
- Brief managers on the changes to ensure sickness absences under the new rules are handled confidently and consistently.
- Review enhanced/company sick pay schemes to ensure they remain fit for purpose and don’t need updated to allow for the changes.
Increases to Awards Made in Unfair Dismissal Claims
From 06 April 2026, the Employment Rights (Increase of Limits) Order (Northern Ireland) 2026 takes effect and increases limits to certain awards and payments awarded by the Industrial Tribunal in relation to unfair dismissal claims in NI.
Therefore, an unfair dismissal claim presented on or after 06 April 2026, the following increases will apply:
- Maximum amount of a Week’s Pay (which is for the purpose of calculating a redundancy payment and basic award or additional award for unfair dismissal) increases from £749 to £783.
- Limit on amount of Compensatory Award for unfair dismissal increases from £118,455 to £123,785.
- Maximum Basic Award for unfair dismissal from £22,470 to £23,490.
- Minimum Basic Award for unfair dismissal from £9,102 to £9,512.
- Limit on amount of Guarantee Payment for a workless day increases from £39 to £41.
This article has been produced for general information purposes and further advice should be sought from a professional advisor. Please contact our Employment team at Cleaver Fulton Rankin for further advice or information.
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