In Short
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Employers in England and Wales must pay the correct minimum wages and provide statutory entitlements, which usually change each April.
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From April 2026, statutory sick pay will apply from day one and the lower earnings limit will be removed.
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Employees and eligible workers are entitled to paid annual leave and statutory family-related payments.
Tips for Businesses
Review your pay rates before April each year to ensure they match the latest statutory figures. Check payroll systems are ready for the April 2026 sick pay changes, including day-one payments. Keep clear records of hours worked, leave taken and family-related payments, and update employment contracts and policies where needed to reflect current entitlements.
As an employer, you must comply with employment law obligations. This includes ensuring your employees and workers receive the correct minimum entitlements and pay rates according to employment law in England and Wales. The statutory rates of pay change every year in April and apply to all employers and employees.
Correctly paying your staff is essential to meet your legal obligations as an employer. This article outlines the national minimum wage in England and Wales and other minimum entitlements for 2025-26.
National Minimum Wage
The National Minimum Wage is payable to all employees and workers.
| Age | Rate of pay (per hour) for 2025/26 | Rate of pay (per hour) from April 2026 until April 2027 |
| Workers aged 21 and over (National Living Wage*) | £12.21 | £12.71 |
| Workers agreed between 18-20 | £10.00 | £10.85 |
| Workers under 18 | £7.55 | £8.00 |
| Apprentices** | £7.55 | £8.00 |
*The National Living Wage will apply to anyone aged 21 and over from April 2024. The National Minimum W* The National Living Wage will apply to anyone aged 21 and over. The National Minimum Wage is payable to all employees and workers.
**Apprentices are entitled to the apprentice rate if they are either:
- aged under 19; 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 2025/26 |
| Workers aged 18 and over (and outside of London) | £13.45 |
| Workers aged 18 and over (and in London) | £14.80 |
It is voluntary to pay your employees according to the real living wage. Businesses can choose to pay employees more than the Government’s National Minimum Wage or National Living Wage.
Continue reading this article below the formSick 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); and
- have been ill for more than 3 days in a row (including non-working days).
The UK’s Employment Rights Act 2025 made significant changes to Statutory Sick Pay. These changes are due to come into force in April 2026 and will:
- remove the Lower Earnings Limit; and
- remove the 3-day waiting period.
| Payment | Rate of pay (per week) for 2025/26 | Rate of pay (per week) until April 2026 |
| Statutory sick pay | £118.75 | Calculated as the lower of: 80% of earnings; or £123.25 |
| Lower earnings limit (per week) | £125 | Removed |
Bank Holidays 2026 (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 2026 |
| Good Friday | 3 April 2026 |
| Easter Monday | 6 April 2026 |
| Early May Bank Holiday | 4 May 2026 |
| Spring Bank Holiday | 25 May 2026 |
| Summer Bank Holiday | 31 August 2026 |
| Christmas Day | 25 December 2026 |
| Boxing Day (substitute day) | 28 December 2026 |
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 2025/26 | Rate of pay (per week) from April 2026 until April 2027 |
| Statutory maternity pay | 90% of the employee’s normal weekly earnings | £187.18 or 90% of the employee’s average weekly earnings (whichever is lower). | £187.18 or 90% of the employee’s average weekly earnings (whichever is lower). | £194.32 |
| Statutory adoption pay | 90% of the employee’s normal weekly earnings. | £187.18 or 90% of the employee’s average weekly earnings (whichever is lower). | £187.18 or 90% of the employee’s average weekly earnings (whichever is lower). | £194.32 |
Other Family Friendly Payments
| Payment | Rate of pay (per week) for 2025/26 | Rate of pay (per week) from April 2026 until April 2027 |
| Statutory paternity pay | £187.18 or 90% of the employee’s average weekly earnings (whichever is lower) | £194.32 |
| Statutory parental bereavement pay | £187.18 or 90% of the employee’s average weekly earnings (whichever is lower) | £194.32 |
| Statutory shared parental leave pay | £187.18 or 90% of the employee’s average weekly earnings (whichever is lower) | £194.32 |
| Statutory neonatal care pay | £187.18 or 90% of the employee’s average weekly earnings (whichever is lower) | £194.32 |
Typically, family friendly payments and other family friendly payments are only payable to employees. However, the definition of ‘employee’ for these payments is broader than the standard definition in the Employment Rights Act 1996. Therefore, those with worker status may be eligible.
This guide will help you understand the moving parts behind building a high-performing team.
Key Takeaways
Understanding your employees’ and workers’ legal entitlements is essential. If you do not stay aware of these rights, you risk underpaying your staff and facing legal consequences.
Some minimum entitlements you must provide to your employees and workers include:
- paying staff according to the National Minimum Wage (or Real Living Wage if you choose to do so);
- providing statutory sick pay to eligible employees;
- providing paid annual leave; and
- complying with family friendly payment requirements.
Notable changes from April 2026 include statutory sick pay becoming payable from the first day of illness (rather than the fourth day) and the removal of the lower earnings limit for eligibility.
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