April 2022 – National Wage Rate Changes
Our Senior Solicitor in the Employment Department, Harinder Sanga has outlined the rate changes which will be affecting both employers and employees, coming into effect from April 2022.
The majority of the April 2022 rate changes have been published, and one notable exception that is missing regarding the April 2022 rate changes is what the new statutory cap on a week’s pay will be to calculate the basic reward and statutory redundancy pay.
From 1 April 2022, the National Living Wage and National Minimum Wage are set to increase.
Some of these increases can be found in the table below:
|Rate Increase||April 2021 Rate||April 2022 Rate|
|National Living Wage – Workers aged 23 and over||6.6%||£8.91 per hour||£9.50 per hour|
|National Minimum Wage – Workers aged 21-22||9.8%||£8.36 per hour||£9.18 per hour|
|National Minimum Wage – Workers aged 18-20||4.1%||£6.56 per hour||£6.83 per hour|
|National Minimum Wage – Workers aged 16-17||4.1%||£4.62 per hour||£4.81 per hour|
|Apprentice Rate||11.9%||£4.30 per hour||£4.81 per hour|
|Accommodation offset rate daily rate||4.1%||£8.36||£8.70|
In light of the new rate being set for the National Living Wage, the Government has also implemented the recommendations from the Low Pay Commission, available here.
Officials of the Low Pay Commission have highlighted how the economic situation has improved since 2021. Bryan Sanderson. The Chair of the Low Pay Commission suggested that the labour market has recovered since 2021 but also stated that despite this, “inter-related issues affecting global supply chains, rising input costs and staff availability present some near-term risks.”
A few other areas covered in April 2022 rate changes are increases in family friendly payments, Statutory Sick Pay (SSP) and the new statutory cap.
Family Friendly Payment Increases
Statutory Maternity Pay– This has increased to a maximum of £156.66 per week which has increased from £151.97 per week (3.1%). Individuals are entitled to 39 weeks, at a rate of 90% of gross weekly pay per week, after the first 6 weeks.
Statutory Paternity Pay– Increased by 3.1% from £151.97 per week to £156.66 per week, or 90% of average weekly earnings per week
Statutory Shared Parental Pay– Increased by 3.1% from £151.97 per week to £156.66 per week, or 90% of average weekly earnings per week
Statutory Adoption Pay– Increased by 3.1% from £151.97 per week to £156.66 per week. Individuals entitled to this can receive it for 39 weeks at a rate of 90% of gross weekly pay per week, after the first 6 weeks.
Statutory Parental Bereavement Pay– This will rise by £151.97 per week to £156.66 per week.
Statutory Sick Pay (SSP) Increases– For employees and workers entitled to Statutory Sick Pay (SSP), the rate will increase by 3.1%, from £96.35 per week to £99.35 per week. The lower earnings limit (LEL) will increase from £120 to £123 per week and this represents the first increase of the LEL in two years.
The New Statutory Cap
The statutory cap on a week’s pay regarding the basic award and statutory redundancy pay has risen from £544.00 per week to £571.00 per week and will come into effect from the 6th April 2022.
To find out how much individuals in various age ranges are entitled, and how to calculate your unique statutory redundancy pay, click here. The maximum Statutory Redundancy Pay (based on 20 years’ service, and an age multiplier of 1.5) has now risen to £17,130.00 from £16,320 in total (when considering 20 x £571.00 x 1.5).
Employment Tribunal Compensation
Another approaching change, due from the 6th April 2022 is Employment Tribunal Compensation. The amount that a successful claimant is awarded is calculated in the same way as Statutory Redundancy Pay. If a claimant has been judged to be unfairly dismissed, they are entitled to compensation amounting to a maximum of 52 weeks’ pay which is subject to an overall cap, and that capped allowance rises from £89,493 to £93,878.
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