As 1 April 2023 approaches, please do consider the following increases:
National Minimum and Living Wage
Increases to the National Living Wage (NLW) and National Minimum Wage (NMW) take effect from 01 April 2023.
- NLW for workers aged 23 and over increases to £10.42 per hour (from £9.50) ;
- NMW for workers aged 21-22 increases to £10.18 per hour (from £9.18);
- NMW for workers aged 18-20 increases to £7.49 per hour (from £6.83);
- NMW for workers under 18 increases to £5.28 per hour (from £4.81); and
- NMW for apprentices increases to £5.28. per hour (from £4.81).
The NLW is the statutory minimum employers must pay their workers aged 23 and above. The NMW is the statutory minimum employers must pay for those of at least school leaving age.
Find out more about NLW and NMW here.
Increases to the limits for tribunal awards and calculations take effect from 6 April 2023
The cap for a weeks’ pay (for the purposes of the statutory redundancy calculation or basic unfair dismissal award) increases from £571 to £643.
This also means the maximum amount an employee can receive as a basic award or statutory redundancy payment (provided they are otherwise eligible) will increase from £17,130 to £19,290.
The maximum compensatory award for unfair dismissal increases from £93,878 to £105,707 (or remains 12 months’ pay, whichever is lower).
Statutory payments increases take effect from April 2023
The rate of weekly Statutory Sick pay will increase from £99.35 to £109.40 from 6 April 2023.
The capped rate for a week’s pay for statutory maternity, paternity, adoption and shared parental leave increases from £156.66 to £172.48 from April 2023 (or be set at 90% of the individual’s weekly earnings if that amount is lower).
General Employment Law updates 2023
Please note organisations such as private companies and charities with a headcount of 250 or more on the ‘snapshot date’ (being 5 April) are also due to submit their gender pay gap information, together with a written statement by 4 April 2023. Public-sector organisations have an earlier deadline to report by 31 March 2023. Further information can be found here.
In light of King Charles III’s coronation scheduled for Saturday 6 May 2023, there will be an additional bank holiday on Monday 8 May 2023. For guidance regarding additional bank holiday entitlements and pay, please do revisit our previous article addressing this here.
For any advice and information on employment matters and how the Employment team can help, please email our specialist team here.