UK Statutory Pay Rates 2026/27: Every Figure an Employer Needs

What changes from April 2026 and why employers should review pay settings now

Each April, the government updates a range of statutory rates that affect pay, leave and employment costs. For small businesses, that usually means updating payroll software, checking contracted pay against the new minimums and confirming that any absence or family leave calculations use the right figures.

Even if you outsource payroll, it is still worth understanding the numbers yourself. A missed update can create underpayments, awkward employee conversations and avoidable back-pay corrections. If you want a fuller picture of how these changes affect your wider people processes, our outsourced HR support service can help you keep the moving parts under control.

National Minimum Wage and National Living Wage rates from April 2026

The National Minimum Wage and National Living Wage are the headline rates most employers look for first. From April 2026, the main hourly rates are expected to be £12.71 for workers aged 21 and over, £10.85 for 18 to 20 year olds and £8.00 for 16 to 17 year olds and apprentices in the relevant apprenticeship scenarios.

For employers, the key point is not just knowing the figures, but applying them correctly. You need to check contracted hours, unpaid deductions, salary sacrifice arrangements and any time spent on mandatory training or travel that should count as working time. If you are reviewing your wider employment paperwork at the same time, our HR services for growing businesses can support you with pay structures, contracts and policy updates.

• 21 and over: £12.71 per hour
• 18 to 20: £10.85 per hour
• 16 to 17: £8.00 per hour
• Apprentices: check the apprentice rate rules before payroll is run

Statutory Sick Pay for 2026/27 and how to apply the SSP rate

The SSP rate 2026 27 is expected to be £123.25 per week. Statutory Sick Pay is paid when an eligible employee is off sick for four or more consecutive qualifying days, provided they meet the earnings threshold and other conditions.

In practice, the mistakes happen around dates and eligibility. Employers sometimes pay SSP too early, forget to apply waiting days correctly, or miss that some workers do not qualify because their average earnings are too low. It is worth checking your absence process, payroll settings and manager guidance together so everyone handles sickness consistently.

If your team needs help tightening the process, Flora HR can review your sickness absence rules and advise on practical payroll steps, so you are not relying on guesswork when someone phones in sick.

Statutory family pay rates: maternity, paternity, adoption, shared parental and parental bereavement pay

Most statutory family pay rates move in line with the same annual review. For 2026/27, the standard weekly rate for statutory maternity pay, paternity pay, adoption pay, shared parental pay and parental bereavement pay is expected to be £194.32, or 90% of average weekly earnings if that is lower.

The headline figure is only part of the story. Each type of leave has its own eligibility rules, notice requirements and payment period. For example, maternity pay does not work in the same way as paternity leave, and shared parental pay brings extra complexity because it depends on how leave is split between parents.

This is one of the areas where small businesses often need a practical second pair of eyes. A clear policy, a manager script and a simple checklist can prevent avoidable mistakes and reduce stress for the employee at what is often a sensitive time.

• Statutory maternity pay 2026: expected weekly rate of £194.32
• Paternity pay: expected weekly rate of £194.32
• Adoption pay: expected weekly rate of £194.32
• Shared parental pay: expected weekly rate of £194.32
• Parental bereavement pay: expected weekly rate of £194.32

Other statutory limits employers should know, including redundancy pay caps

Not every employment cost changes in the same way, but some important limits are updated annually. One of the most relevant is the redundancy pay cap, which affects statutory redundancy calculations. For 2026/27, the weekly cap is expected to be £751.

That cap matters because it can change the amount owed when an employee with enough service is made redundant. It also affects budgeting if you are restructuring, closing a site or replacing roles. If you need a deeper walkthrough, our guide on working out redundancy pay for 2026/27 explains the calculation step by step.

Other limits and thresholds can also affect your HR processes, including notice pay, tribunal compensation references and certain statutory leave calculations. You do not need to memorise every figure, but you do need a reliable annual review process so nothing is missed.

Common payroll and HR mistakes to avoid when updating pay and contracts

The most common errors are simple, but they can still create real problems. Employers forget to update rates in payroll software, continue using an old handbook figure, or assume a salaried employee is outside National Minimum Wage rules. Another frequent issue is not telling managers what has changed, so they give employees outdated information.

Contract wording also needs a review. If a contract or policy refers to the wrong rate, it can create confusion even when payroll itself is correct. It is also wise to check working patterns, overtime rules and unpaid deductions to make sure no one drops below the statutory minimum after the April update.

A well-run HR process makes this much easier. If your business is growing and you want support with documentation, employee communications and annual compliance checks, Flora HR can help you put a simple, repeatable system in place.

• Update payroll settings before the first April payroll run
• Check contracts, handbooks and offer letters for outdated pay references
• Review salaried roles as well as hourly roles
• Brief line managers on the new figures and any eligibility rules
• Keep a record of which policies and templates were updated

How Flora HR can help you keep pay, policies and compliance up to date

For many small businesses, statutory pay updates are manageable in theory but time-consuming in practice. You may have payroll in one system, contracts in another and managers making decisions without a single source of truth. That is where clear HR support makes a difference.

Flora HR helps UK SMEs keep pay, policies, leave processes and compliance documentation up to date in a way that is practical, not overcomplicated. If you want support reviewing your HR setup ahead of April, or you would like someone to sense-check your approach to pay, leave and employee communications, get in touch with Flora HR to start the conversation.

We can also help you connect the dots between pay changes and the wider employee experience, so your business stays organised as it grows.