UK Statutory Rates and National Minimum Wage Changes for April 2026: What Remote-Hiring Employers Should Know

The UK regularly updates its statutory rates, including minimum wage, sick pay, and family leave payments. For employers hiring remote talent or employees in the UK, being prepared for these changes ensures smooth payroll operations and compliance with local law.

What Is Changing in April 2026

1. National Living Wage and National Minimum Wage Increases

The UK government has accepted in full the recommendations from the independent Low Pay Commission to raise minimum pay rates for April 2026. These changes aim to support workers while reflecting economic conditions.

New UK statutory hourly minimum rates from 1 April 2026:

• National Living Wage (for those aged 21 and over): £12.71 per hour
• National Minimum Wage (18 to 20 year olds): £10.85 per hour
• Rate for 16 to 17 year olds: £8.00 per hour
• Apprentice rate: £8.00 per hour
• Accommodation offset rate: £11.10 per day (GOV.UK)

These increases represent a 4.1 percent rise for the National Living Wage, with larger percentage increases for younger age bands. The accommodation offset, which applies when employers provide lodging, also increases to reflect rising living costs. (GOV.UK)

Why this matters:
For employers, including those hiring remote UK-based talent, payroll systems must be updated ahead of April. Ensuring the correct minimum wage is paid helps avoid compliance issues and supports fair compensation practices.

2. Statutory Sick Pay and Family Leave Pay Increases

In addition to minimum wages, the government is updating statutory pay rates for time off due to sickness or family leave.

Statutory pay increases effective April 2026 include:

• Statutory Sick Pay (SSP): £123.25 per week, up from £118.75
• Statutory maternity pay, paternity pay, adoption pay, shared parental pay, parental bereavement pay and neonatal care leave pay: £194.32 per week, up from £187.18
• Lower Earnings Limit (LEL): £129 per week, up from £125 (HR Connect)

Why this matters:
These increases affect employee entitlements and payroll calculations when team members take leave due to sickness or family responsibilities. Employers need to factor these rates into budget planning and benefits administration.

Expert Perspectives and Broader Context

Independent Advisory Role

The Low Pay Commission is a statutory body that advises the UK government on the minimum wage. Its recommendations aim to balance fair worker compensation with sustainable business costs. The government’s full acceptance of the LPC’s advice for 2026 reflects ongoing efforts to keep the National Living Wage moving in line with median earnings. (GOV.UK)

Legal and HR specialists highlight that these adjustments are part of a long-running trend toward strengthening worker protections while supporting business viability. Regular revisions help keep statutory rates aligned with inflation and living costs, but they also require employers to plan appropriately for the impact on payroll and talent costs.

Practical Implications for Employers Hiring in the UK

Updating Payroll and Compliance

Employers must update payroll systems to reflect the new minimum wages and statutory pay rates. This applies regardless of where the employer’s head office is located if UK-based employees or remote workers fall within the new legal requirements.

Budgeting and Cost Forecasting

Forecasting labour costs is essential. Higher minimum wage thresholds and increased statutory payments may increase overall employment expenses, particularly for organisations with large entry-level or younger workforces.

Employment Contracts and Policies

Employment contracts and HR policies should be reviewed to ensure they reference current statutory rates. Clearly communicating these changes to affected employees can also help maintain trust and operational clarity.

Worker Classification

Employers should assess whether their UK team members are correctly classified as employees or contractors. Misclassification can create compliance risks, especially where minimum wage rules apply.

Why Working With an EOR Matters

Partnering with a UK Employer of Record such as Tarmack provides significant advantages when navigating statutory rate changes:

• Automated payroll updates that align with evolving minimum wage and statutory pay requirements
• Compliance management for UK employment law, reducing risk of penalties
• Accurate benefits calculations including SSP and family leave pay
• Documentation and reporting that meets HMRC and employment standards

By leveraging local expertise, employers can focus on hiring great talent while maintaining confidence that statutory changes are handled correctly.

Final Thought

Statutory rate changes like those scheduled for April 2026 reflect the UK’s ongoing effort to ensure fair compensation while balancing business sustainability. For foreign employers hiring remote staff in the UK, anticipating and integrating these legal updates into payroll and HR frameworks is essential.

Working with an experienced Employer of Record partner allows organisations to stay compliant, competitive, and focused on growth while statutory requirements evolve.