In April each year, the rates for various employment law payments are updated and employers need to be sure to incorporate the appropriate changes, including increases to wages, statutory pay and other rates. Below is a summary of the key changes or you can download our Employment Essentials guide for full details.
Increase to minimum wage and other statutory pay rates
From 1 April 2023 the following rates apply for National Minimum/Living wage:
- 23 years and over - rate will increase to £10.42 per hour (increase of 92p)
- 21 to 22 years old - rate will increase to £10.18 per hour (increase of £1)
- 18 to 20 years old - rate will increase to £7.49 per hour (rise of 66p)
- under 18 years old (above compulsory school age) - rate will increase to £5.28 per hour (up by 47p)
- apprentices under 19 years or over 19 in year 1 of apprenticeship) - rate will increase to £5.28 per hour (increase of 47p)
On 6 April the rates of statutory sick pay (SSP) rise from £99.35 to £109.40.
From 2 April statutory family payment rates also increase, therefore maternity, paternity, shared parental, parental bereavement and adoption pay increase from £156.66 to £172.48.
Compensation limits for certain tribunal awards and other statutory payments
Where termination of employment occurs on or after 6th April 2023, the following rates apply:
- The limit on a week's pay increases from £571 to £643.
- The same weekly limit will apply to the calculation of statutory redundancy payments.
- The maximum compensatory award for unfair dismissal in Employment Tribunal awards is increasing to £105,707.
- The minimum basic award for certain unfair dismissals (including health and safety dismissals) increases from £6,634 to £6,959.
Public holidays – The Coronation of King Charles III
There is an additional Bank Holiday on Monday 8 May 2023 following the coronation ceremony of Saturday 6 May.
A number of other proposals and changes to employment law are currently under consideration in the UK Parliament, or its committees, covering issues ranging from menopause to strikes.
Our Prism services for businesses can help you stay up to date with these and other employment law issues. If you would like to discuss any of the above changes our employment team will be happy to help.
