Increases to Statutory Payments and LimitsPublished on: 02 March 2022
National Minimum Wage
From 1 April 2022, the National Living Wage increased from £8.91 to £9.50 an hour.
National Minimum Wage rates for those under the age of 23 and first year apprentices are to increase as follows:
- Workers aged 21 to 22: £9.18 (up from £8.36)
- Workers aged 18 to 20: £6.83 (up from £6.56)
- Workers aged 16 to 17: £4.81 (up from £4.62)
- Apprentices in their first year: £4.81 (up from £4.30)
The accommodation offset rate will increase from £8.36 to £8.70.
Agricultural Minimum Wage in Wales
See our separate blog on the Agricultural Wages (Wales) Order 2022 here.
From 11 April, Statutory Maternity Pay, Statutory Paternity Pay, Statutory Adoption Pay, Statutory Shared Parental Pay and Statutory Parental Bereavement Pay will increase from £151.97 per week to £156.66 (or, if lower, 90% of an employee’s average weekly earnings).
Statutory Sick Pay (SSP)
From 11 April, SSP increased from £96.35 to £99.35 per week.
For dismissals with an effective date of termination on or after 6 April, the cap on the value of a week’s pay for certain statutory purposes, such as calculating statutory redundancy pay and basic awards of compensation, will increase from £544.00 to £571.00.
The maximum compensatory award for unfair dismissals will increase from the higher of 52 weeks’ normal pay and £89,493.00 to the higher of 52 weeks’ normal pay and £93,878.00.
Statutory guarantee pay
During periods of lay-off or short-time working an employee may be entitled to a statutory guarantee payment, which is calculated by multiplying the number of normal working hours on the workless day by the guaranteed hourly rate. With effect from 6 April, the maximum guarantee payment will increase to £31.00 per day (subject to a maximum of 5 days or £155 in any 3 months) from £30.00 per day.
For further details relating to the law around and relating to the above payments and limits, please contact me or a member of the employment team.