Here we have our annual update on the changes to statutory pay rates taking effect from April 2023.
||New Rate from 1 April 2023
|| Old Rate
|National Living Wage
|21-22 Year Old Rate
|18-20 Year Old Rate
|16-17 Year Old Rate
|Apprentice Rate (*)
(*) – The apprentice rate is for apprentices aged 16 to 18 and those aged 19 or over who are in their first year. All other apprentices are entitled to the National Minimum Wage applicable to their age.
Statutory Family-Related Pay – the weekly rate of statutory maternity, paternity, adoption and shared parental pay will increase on 2 April 2023 to £172.48 (up from £156.66).
Statutory Sick Pay – the weekly rate of statutory sick pay will increase on 6 April 2023 to £109.40 (up from £99.35).
Statutory Redundancy Pay – the weekly rate of pay for the purpose of redundancy pay calculations will from 6 April 2023 be capped at £643, increasing from £571.
Tribunal Awards – the maximum possible statutory award for redundancy will increase to £19,290 (up from £17,130). The maximum compensatory award for ordinary unfair dismissal will increase to the lesser of 1 year’s pay or £105,707 (up from £93,878). These changes take effect on 6 April 2023.
Please update your payroll systems to take account of the new rates and avoid potential penalties or public naming and shaming by HMRC!
For any questions on pay or statutory rates our team of employment law solicitors is here to help. For more information or to get advice, contact us today to book your free initial consultation with one of our friendly experts.
Tel: 01245 893400
Visit: 17 Duke Street, Chelmsford, CM1 1JU
Or send us a message through the Contact Us page on this website.