Reminder – Increases to National Minimum Wage and National Living Wage
Further to our blog in March, we remind employers that the National Minimum Wage (NMW) and National Living Wage (NLW) are increasing with effect from 1st April 2022.
For individuals aged 23 and over, the NLW increases from £8.91 to £9.50 per hour.
The NMW increases as follows:
- 21- to 22-year-olds: increasing from £8.36 to £9.18 per hour
- 18- to 20-year-olds: increasing from £6.56 to £6.83 per hour
- 16- to 17-year-olds: increasing from £4.62 to £4.81 per hour
- Apprentices: increasing from £4.30 to £4.81 per hour
In addition, the accommodation offset rate will increase from £8.36 to £8.70 per day.
Further Information – OTHER STATUTORY RATES
Other statutory rates are increasing as follows:
From 3rd April 2022:
- The standard weekly rates of statutory maternity pay (SMP), statutory adoption pay (SAP), statutory paternity pay (SPP), statutory shared parental pay (ShPP) and statutory parental bereavement pay (SPBP) will increase from £151.97 to £156.66 (or 90% of the employee’s average weekly earnings if that is less than the statutory rate).
From 6th April 2022:
- The weekly rate of statutory sick pay (SSP) will increase from £96.35 to £99.35.
- The lower earnings limit (LEL), below which employees do not qualify for these statutory payment rates, will increase from £120 to £123 per week.
- Compensation rates: a “week’s pay” increases from £544 to £571 per week. A “week’s pay” is used to calculate statutory redundancy payments, payments to employees in the event of insolvency and various awards including the unfair dismissal basic and additional awards. The above-mentioned increase means the maximum basic award for unfair dismissal and statutory redundancy pay (30 weeks’ pay, subject to the limit on a weeks’ pay) will increase from £16,320 to £17,130.
- The maximum compensatory award for unfair dismissal will rise from £89,483 to £93,878 (there is an additional cap of one year’s salary on the unfair dismissal compensatory award, whichever is the lesser).
- The minimum basic award for certain unfair dismissals, such as dismissals for reasons of trade union membership or activities, health and safety duties or acting as an employee representative or workforce representative, will go up from £6,634 to £6,959.
- the maximum award for unlawful inducement relating to trade union membership or activities, or collective bargaining, will increase to £4,554, and
- The minimum compensation for employees excluded/expelled from trade union will go from £10,132 up to £10,628
- Finally, the limit on the daily amount of statutory guarantee pay, which is used to pay employees for the first 5 workless days if you lay them off work will increase to £31 per day.
For further general HR guidance and information, and HR templates, please visit https://yourhr.guide/.
If you feel that you need guidance or advice on this matter, please call Practical HR on 01702 216573