Increase to statutory rates from April 2022!

Every April we see an increase in statutory rates relating to employment as stated below:

NATIONAL MINIMUM WAGE

  • The National Living Wage (which since 2021 has applied to those aged 23 and over) will increase to £9.50 (up from £8.91).
  • The minimum hourly rate for 21-22 year olds will increase to £9.18 (up from £8.36).
  • The minimum hourly rate for 18-20 year olds will increase to £6.83 (up from £6.56).
  • The minimum hourly rate for 16-17 year olds will increase to £4.81 (up from £4.62).
  • The apprentice rate (for those under 19 years or those over 19 in their first year of apprenticeship) will increase to £4.81 (up from 4.30).
  • The accommodation offset rates will also increase, with a daily rate of £8.70 (up from £8.36) and a weekly rate of £60.90 (up from £58.52).

NATIONAL INSURANCE CONTRIBUTIONS

From 6 April 2022, NICs for both employers and employees will increase by 1.25% in order to provide additional funding to health and social care services.

STATUTORY SICK PAY

From 6 April 2022, the rate of Statutory Sick Pay (SSP) will increase to £99.35 per week (up from £96.35 per week).

For the first time in two years, the minimum average weekly earnings required to qualify for SSP will increase to £123 per week (up from £120 per week).

FAMILY-RELATED PAY

From 3 April 2022, the rates for Statutory Maternity, Paternity, Adoption, Parental Bereavement, and Shared Parental Pay, are set to increase to £156.66 per week (up from £151.97 per week); the employee will only be entitled to the lesser of 90% of their normal weekly earnings and this new weekly rate (with the exception for Statutory Maternity Pay and Statutory Adoption Pay, where 90% of normal weekly earnings is guaranteed for the first six weeks).

As with SSP, for the first time in two years, the minimum average weekly earnings required to qualify for these family-related payments will increase to £123 per week (up from £120 per week).

DISMISSAL

The maximum compensatory award for unfair dismissal is set to increase from £89,493 to £93,878 (or a year’s salary if this is less), and a week’s pay for redundancy pay, basic award, and other purposes will increase from £544 to £571.  The increases apply to dismissals on or after 6 April 2022.

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