Labour Research April 2022

Law Matters

April sees increases in statutory payments for workers

April sees increases in a number of statutory payments affecting workers.

From 1 April 2022, the National Living Wage rate increases from £8.91 to £9.50 per hour (for those aged 23 and over). National Minimum Wage rates for those under the age of 23, and first-year apprentices, increase as follows:

• workers aged 21 to 22: £9.18 (up from £8.36);

• workers aged 18 to 20: £6.83 (up from £6.56);

• workers aged 16 to 17: £4.81 (up from £4.62); and

• apprentices in their first year: £4.81 (up from £4.30).

From 11 April 2022 Statutory Maternity Pay, Statutory Paternity Pay, Statutory Adoption Pay, Statutory Shared Parental Pay and Statutory Parental Bereavement Pay all increase from £151.97 per week to £156.66 (or, if lower, 90% of an employee’s average weekly earnings).

Also from 11 April, Statutory Sick Pay (SSP) increases from £96.35 to £99.35 per week.

From 6 April 2022 there are increases to the compensation limits for certain employment rights, as the Employment Rights (Increase of Limits) Order 2022 comes into force.

The maximum amount of a week’s pay (for calculating an unfair dismissal basic award and a statutory redundancy payment) increases to £571 (from £544).

The maximum compensatory award for unfair dismissal increases to £93,878 (from £89,493).

These new limits will apply to dismissals occurring on or after 6 April 2022.