April 21, 2022

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    Update - Employment Law rate changes are coming in April 2023!

    April is the time of year when various statutory employment rates go up. We have compiled below some of the changes that will affect Microsoft Partners from April 2023.

    National Minimum Wage (NMW) and National Living Wage

    Age Rate from April 2023 Previous rate % Inc. % Previous year Inc.
    23 and over
    (National Living Wage)
    £10.42 £9.50 9.7% 6.6%
    21 – 22 (NMW) £10.18 £9.18 10.9% 9.8%
    18-20 (NMW) £7.49 £6.83 9.7% 4.1%
    16-17 (NMW) £5.28 £4.81 9.7% 4.1%
    Apprentice rate £5.28 £4.81 9.7% 11.9%
    Accommodation offset £9.10 £8.70 4.6% 4.1%

    Family Leave

    Weekly pay is increasing for those who are eligible for:
    • Statutory Maternity pay
    • Statutory Paternity pay
    • Statutory Adoption pay
    • Statutory Shared Parental pay
    • Statutory Parental Bereavement pay
    Rate from April 2023 Previous rate
    £172.48 £156.66

    Statutory Sick Pay

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

    Rate from April 2023 Previous rate
    £109.40 £99.35

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

    Changes from April 2022

    Below are rates from last year, changes have not yet been announced as of December 2022.

    Statutory Redundancy Pay

    Statutory Redundancy Pay increases have not been announced yet.

    The statutory limit on a week’s pay rate (gross) used in a redundancy pay calculation went up 6th April 2022.

    Rate from April 2022 Previous rate
    £571 £544

    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

    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).

    Employment Tribunal Awards

    Employment Tribunal Awards increases have not been announced yet.

    An employment tribunal award for unfair dismissal will usually consist of a basic award and a compensatory award.

    • The calculation for the basic award element of an unfair dismissal claim is made in the same way as statutory redundancy pay (above).
    • The compensation an employee can be awarded at an employment tribunal in the vast majority of unfair dismissal claims is subject to a statutory cap. This cap rose on the 6th of April 2022. The cap is 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 rate increases. Feel free to contact us or give us a call!

    Further Reading

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

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