April 2026 brings a number of payroll updates that will affect pay rates, statutory payments and employer costs. Making sure your payroll is updated in time will help avoid underpayments, compliance issues and HMRC penalties.
Here’s a practical summary of the key changes.
National Minimum Wage Increases (from 1 April 2026)
New hourly rates:
- £12.71 – age 21 and over
- £10.85 – age 18–20
- £8.00 – age 16–17 and apprentices
These increases will impact:
- Salaried hours workers
- Salary sacrifice arrangements
- Accommodation offset calculations
- Back-pay risk where hours fluctuate
Employers should review pay rates before the first April payroll to remain compliant.
Statutory Sick Pay Reform (from 6 April 2026)
The biggest change this year is SSP:
- SSP becomes payable from day one of sickness
- The Lower Earnings Limit is removed for eligibility
- Some lower-paid employees will receive 80% of average weekly earnings (if this is less than the standard SSP rate)
This means more employees will qualify and short absences will now attract SSP.
👉 See our separate blog for full details on the SSP changes.
Statutory Family Pay Increases (from 6 April 2026)
The weekly rate for statutory payments increases to £194.32 (or 90% of average weekly earnings if lower), including:
- Statutory Maternity Pay
- Statutory Paternity Pay
- Statutory Adoption Pay
- Shared Parental Pay
- Statutory Neonatal Care Pay
Payroll systems must be updated with the new rate from the first pay period after 6 April.
Lower Earnings Limit Increase
The Lower Earnings Limit (LEL) rises to £129 per week.
This affects:
- National Insurance credit entitlement
- Pension auto-enrolment assessments
- Certain statutory payment calculations
Day One Statutory Leave Rights
From April 2026:
- Paternity leave becomes a day-one right
- Unpaid parental leave becomes a day-one right
While this is an HR change, it will result in more statutory leave cases being processed through payroll earlier in employment.
Increased Enforcement – Fair Work Agency
A new Fair Work Agency launches in April 2026 with powers to enforce:
- National Minimum Wage
- Statutory Sick Pay
- Holiday pay
This makes accurate payroll processing more important than ever.
Employer National Insurance – Ongoing Cost Impact
There are no further increases to employer NIC rates in April 2026; however, the higher 15% rate and lower £5,000 threshold introduced in April 2025 continue to increase employment costs in 2026/27.
However, the Employment Allowance has increased to £10,500 and is now available to more businesses, which may help offset some of the additional NIC liability.
What Employers Should Do Now
To prepare for April 2026, employers should:
✔ Update payroll software with new SSP and statutory rates
✔ Review pay levels for National Minimum Wage compliance
✔ Check eligibility settings for SSP and statutory leave
✔ Budget for increased SSP and NIC costs
✔ Ensure policies and employment contracts reflect the new rules
Disclaimer: This content is provided for general guidance only and does not constitute legal, tax or payroll advice.
For the latest official guidance, see
https://www.gov.uk/statutory-sick-pay
https://www.gov.uk/guidance/rates-and-thresholds-for-employers-2026-to-2027
https://www.gov.uk/government/collections/hm-revenue-and-customs-employer-bulletin