Increases to Statutory Payments and Limits

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.

Family-related payments

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.

Compensation limits

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.