As the start of a new tax year approaches there will be an increase to the statutory rates payable for certain employment rights that will apply from April 2023. We have detailed these in this week’s blog below.
New minimum wage rates
From 1 April 2023, the following hourly national minimum wage rates will apply:
- National living wage for those aged 23 and over: up from £9.50 to £10.42.
- National minimum wage for those aged 21 to 22: up from £9.18 to £10.18.
- National minimum wage for those aged 18 to 20: up from £6.83 to £7.49.
- National minimum wage for those aged 16 to 17: up from £4.81 to £5.28.
- Apprentice Rate: up from £4.81 to £5.28.
Employers will need to factor in these increases in the coming financial year.
From 10 April 2023 the weekly rate of statutory sick pay will be £109.40 per week (up from £99.35 per week).
From 2 April 2023, the prescribed rate of statutory maternity pay and maternity allowance, statutory paternity pay, statutory shared parental pay, parental bereavement pay and statutory adoption pay will go up from £156.66 to £172.48.
Cap on a week’s pay
For dismissals on or after 6 April 2023, a week’s basic pay, as used in statutory redundancy calculations and awards for unfair dismissal, will be capped at £643 (up from £571) which in turn means that the maximum basic award for unfair dismissal will be £19,290. In addition there is an increase to the maximum compensatory award for an unfair dismissal claim to £105,707 (up from £93,878).
For more information, please contact a member of the Employment Team.