Employment Law Money Matters

Annual Employment Related Rate Changes

Annual Update to Statutory Pay Scales and Tribunal Awards

National Minimum Wage and National Living Wage

From 1st April 2022, 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:-

  Rate from 1st April 2022 Increase
National Living Wage (NLW)    
Workers aged 23 and over £9.50 6.6%
National Minimum Wage Rates    
(Adult Rate) 21-22 year old £9.18 9.8%
(Development Rate) 18-20 year old £6.83 4.1%
(Young Workers Rate) 16-17 year old £4.81 4.1%
Apprentice Rate £4.81 11.9%

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 £156.66 per week (from £151.97) on 3rd April 2022.

Statutory Sick Pay

From 6th April, the rate will increase to £99.35 per week (from £96.35). For eligibility purposes, the lower earnings limit (LEL) will increase from £120 to £123 per week.

Statutory Redundancy Pay

The cap on the value of a week’s pay, used to calculate Statutory Redundancy Pay, will increase to £571 per week (from £544) with effect from 6th April.

The overall maximum Statutory Redundancy Pay, based on 20 years’ service at an age multiplier of 1.5, therefore increases to £17,130 (from £16,320). 

Employment Tribunals

ET compensation rates are also set to change from 6th 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 £93,878 (from £89,493).