Increases to Statutory Employment Payments from April 2022

employment limits increasing

IN THIS ARTICLE

National minimum wage and other statutory rates of pay are set to change for the year April 2022-2023.

Employers must ensure they adjust employee pay levels to comply with the new statutory rates.

National minimum wage 2022-2023

From 1 April 2022, the following increases will apply:

  • For workers aged 23 and over, the national living wage will increase from £8.91 to £9.50 per hour
  • For workers aged 21 to 22 NMW is increasing from £8.36 to £9.18 per hour
  • For workers aged 18 to 20 NMW is increasing from £6.56 to £6.83 per hour
  • For workers aged 16 to 17 NMW is increasing from £4.62 to £4.81 per hour
  • For apprentices, NMW is increasing from £4.30 to £4.81 per hour

Statutory redundancy pay 2022-2023

When calculating statutory redundancy pay entitlement, the weekly pay limit has been increased to £571 from 6 April 2022. With the service limit set at 20 years, this means that the maximum statutory redundancy pay is £17,130 per employee, although the contract of employment may make provision for enhanced entitlement.

Other statutory employment payment rates 2022-2023

From 3 April 2022, statutory maternity, adoption, paternity and other parental leave will increase from £151.97 to £156.66 per week.

From 6 April 2022, the rate of statutory sick pay will increase from £96.35 to £99.35.

Employee and employer National Insurance Contributions will also be increasing by 1.25% from April.

Compensation rates for unfair dismissal 2022-2023

Unfair dismissal compensation limits are also being increased and will apply to cases where the employee’s effective date of termination is on or after 6 April 2022.

The new limits are as follows:

  • Increase from £544 to £571 for the weekly pay limit applicable when calculating the basic award for unfair dismissal claims
  • Increase of the minimum basic award for certain unfair dismissals (including health and safety dismissals) from £6,634 to £6,959
  • Increase of the maximum compensatory award for an ordinary unfair dismissal from £89,493 to £93,978

 

 

 

 

Author

Increases to Statutory Employment Payments from April 2022 1

Gill Laing is a qualified Legal Researcher & Analyst with niche specialisms in Law, Tax, Human Resources, Immigration & Employment Law.

Gill is a Multiple Business Owner and the Managing Director of Prof Services - a Marketing Agency for the Professional Services Sector.

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