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