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5 min read

2022 employment law rate changes are in!

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April is the time of year when employment law rates go up. We have compiled below some of the changes that will affect Microsoft Partners.

  • From April 1st 2022
  • From April 3rd 2022
  • From April 6th 2022

From April 1st 2022

National Minimum Wage (NMW) and National Living Wage

Aged 23 and over (National Living Wage)

From April 2022 Previous % Increase
£9.50 £8.91 6.6%

 

21 – 22 (NMW)

From April 2022 Previous % Increase
£9.18 £8.36 9.8%

 

18 - 20 (NMW)

From April 2022 Previous % Increase
£6.83 £6.56 4.1%

 

16-17 (NMW)

From April 2022 Previous % Increase
£4.81 £4.62 4.1%

 

Apprentice Rate (NMW)

From April 2022 Previous % Increase
£4.81 £4.30 11.9%

 

Accommodation Offset

From April 2022 Previous % Increase
£8.70 £8.36 4.1%

 

From April 3rd 2022

Statutory Family Leave weekly pay is increasing for those who are eligible from the 3rd of April 2022 which impacts:

  • Statutory Maternity pay
  • Statutory Paternity pay
  • Statutory Adoption pay
  • Statutory Shared Parental pay
  • Statutory Parental Bereavement pay

Increase from £151.97 £156.66


 

From April 6th 2022

1. Statutory Sick Pay

The weekly rate is increasing for those who are eligible for sick pay:

Increase from £96.35 £99.35

Note: the lower earnings limit, which is the minimum an employee must earn to qualify for statutory sick pay, is increasing from £120 per week to £123 per week.


2. Statutory Redundancy Pay

The capped weekly statutory rate (gross) a person may receive when they have been made redundant has gone up from 6 April 2022. The maximum redundancy pay based on 20 years’ service at an age multiplier of 1.5 will now be £17,130 (up from £16,320)

Increase from £544 £571

This figure is used to calculate a person’s statutory redundancy pay. For example:

  • Bob is 55 (over 41 for calculation purposes) and being made redundant and is entitled to a statutory redundancy multiplier of 1.5
  • He earns £1000 per week in his job and his redundancy pay will be capped at £571 per week (gross)
  • He has worked for his employer for 2 full years
  • The calculation would be 1.5 x 2 x 571
  • Bob will receive £1,713

 

3. Employment Tribunal Awards

The compensation an employee can be awarded at an employment tribunal rose on the 6th of April 2022. The calculation for the basic award element of an unfair dismissal is made in the same way as statutory redundancy pay (above).

For the other main element of an unfair dismissal case – the compensatory award the cap has increased so:

52 weeks’ actual pay or £93,493 (up from £89,493) (whichever is the lower).

 

Law 365 are here if you need more information or advice about the employment law pay increases.

Feel free to contact us or give us a call! Get Started

 

Further Reading

Statutory Sick Pay (SSP): Checking sick pay - Acas

Fancy a natter about legal matters?

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  • We’re your  'in-house’ legal team, but we won’t bog you down in legal jargon.
  • We’ll work at your pace to get deals over the line. Fast.

Call us on 01892 313 943 or drop us a note at hello@law365.co


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