NEW 2023 Statutory Payment Increases

Statutory Payments are increasing, as an Employer, do I legally need to pay the minimum?

Each year statutory payments increase, and as an Employer, you are legally obliged to meet these minimum requirements, a failure to do so could lead to a claim in a tribunal, we cover each of these below:

 

National Living and National Minimum Wage Increases

It is safe to say that National Minimum Wage (NMW) and National Living Wage (NLW) increase yearly and in April.

For 2023 the increases are steep to say the least, as an Employer you will need to factor the uplifts in, the largest uplift is 10.9%, an uplift of £1.00 per hour. From April 2023, these are:

 

• The rate for people aged 23 and over – £10.42 per hour (9.7% uplift to the current rate of £9.50)
• The rate for 21-22-year-olds – £10.18 an hour (10.9% uplift to the current rate of £9.18)
• The rate for 18-20-year-olds – £7.49 an hour (9.7% uplift to the current rate of £6.83)
• The rate for 16-17-year-olds – £5.28 an hour (9.7% uplift to the current rate of £4.81)
• Apprentice rate – £5.28 an hour (9.7% uplift to the current rate of £4.81)

 

In addition, an accommodation offset – £9.10 (4.6% uplift to the current rate of £8.70)

 

Family-Friendly Statutory Payments

Along with National Minimum Wage (NMW) and National Living Wage (NLW) increases, Family Friendly Statutory Payments are also increased and in April each year.

Therefore, from April 2023 the rates will increase for:

• Statutory Maternity Pay, Statutory Paternity Pay, Statutory Adoption Pay, Statutory Shared Parental Pay, Statutory Parental Bereavement Pay, and Maternity Allowance will all increase from £156.66 to £172.48 per week

 

Statutory Sick Pay

Along with National Minimum Wage (NMW) and National Living Wage (NLW) increases, Family Friendly Payments, and Statutory Sick Payments are also increased in April each year.

Therefore, from April 2023 the rates will be:

• Statutory Sick Pay will increase from £99.35 to £109.40 per week

 

Statutory Redundancy Pay

In addition to the above rate increases, the statutory redundancy pay maximum weekly amount will be reviewed. Any increase (if applicable) will be published in February 2023 for a 6 April 2023 change.

If you are considering restructuring we would strongly recommend you contact us for legal assistance.

 

 

How can we help?

We are experts dealing with your HR and Employment Law matters, we can assist you should you need our support with managing annual leave, policy writing, or Contracts of Employment, you can contact one of our team today and we can assist you; contact us on: 0333 0069489 or email us on: [email protected]

 

 

 

Disclaimer

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