Every tax year there is an increase to the statutory rates payable for certain employment rights. Our blog this week provides the increases that will apply from April 2022.
New minimum wage rates
From 1 April 2022, the following hourly national minimum wage rates will apply:
- National living wage for those over 23: up from £8.91 to £9.50.
- National minimum wage for those aged 21 to 22: up from £8.36 to £9.18.
- National minimum wage for those aged 18 to 20: up from £6.56 to £6.83.
- National minimum wage for those aged under 18: up from £4.62 to £4.81.
- Apprentice Rate: up from £4.30 to £4.81.
Employers will need to factor in these increases in the coming financial year.
From 6 April 2022 the weekly rate of statutory sick pay will be £99.35 per week (up from £96.35 per week).
From 3 April 2022, the prescribed rate of statutory maternity pay and maternity allowance, statutory paternity pay, statutory shared parental pay, and statutory adoption pay will go up to £156.66.
Cap on a week’s pay
For dismissals on or after 6 April 2022, a week’s basic pay, as used in statutory redundancy calculations and awards for unfair dismissal, will be capped at £571 (up from £544) which in turn means that the maximum compensatory award for an unfair dismissal claim increases to £93,878 (up from £89,493).
For more information, please contact a member of the Employment Team.