Annual Update to Statutory Pay Scales & Tribunal Awards

To help prepare for the forthcoming changes in payment rates, due in April, we’ve compiled a simple outline – see below. 

It’s worth noting, as a salutary lesson, following investigations by HMRC, the Government published, in December 2021, a list of 208 employers who’d failed to make minimum wage payments to their employees. The list of offending businesses included several household names alongside numerous SMEs and sole traders. All 208 were instructed to remedy the shortfall with their staff immediately and in addition were fined collectively a sum that exceeded £2 million pounds, costs that went directly to the Government.

If you do have any concerns over your payroll arrangements e.g., fears of historical shortfalls, please feel free to get in touch, sooner rather than later!

National Minimum Wage and National Living Wage
From 1^st April 2023, both the National Living Wage (those aged 23 and over) and the National Minimum Wage (for those aged 16 – 22) are to increase.
The new hourly rates and increases are as follows:

Family Leave
Statutory Maternity Pay (SMP), Statutory Paternity Pay (SPP), Statutory Adoption Pay (SAP), Shared Parental Pay (SPP) and Statutory Parental Bereavement Pay (SPBP) – weekly rates increase to £172.48 per week (from £156.66) these should take effect from 2nd April 2023.

Statutory Sick Pay
From 6^th April, the rate will increase to £109.40 per week (from £99.35). For eligibility purposes, the lower earnings limit (LEL) will remain at £123 per week.

Statutory Maternity, Paternity Pay

(shared parental and adoption) Pay will increase to £172.48 (up from £156.66) per week from 6^th April.

Statutory Redundancy Pay
The cap on the value of a week’s pay, used to calculate Statutory Redundancy Pay, will increase in line with the retail price index, (RPI) 12.6%, to £643 per week (from £571) with effect from 6^th April.

The overall maximum Statutory Redundancy Pay, based on 20 years’ service at an age multiplier of 1.5, therefore increases to £19,290 (from £17,130).

Employment Tribunals
ET compensation rates are also set to change from 6^th April.
Claimants unfairly dismissed are entitled to a compensatory award of a maximum of 52 weeks’ pay. That award is a capped figure and rises to £105,707 (from £93,878).

If you have any concerns or any issues concerning employment-related matters, please feel free to drop Sean McDonough or Lucy Cotterell a line.