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National Minimum Wage rates on the rise

April 14, 2022
Employment Law

As usual, April brings with it various changes to the pay rates due to employees and workers up and down the country. Of particular note is the increase in our national minimum wage (NMW) rates.

Changes to the NMW

With effect from 1 April 2022, NMW rates increased as follows:

  • ‘National Living Wage’ (23 and over) increased to £9.50;
  • The NMW for those aged 21 to 22 increased to £9.18;
  • The NMW for those aged 18 to 20 increased to £6.83;
  • The NMW for those aged 16 to 17 increased to £4.81;
  • The NMW for apprentices increased to £4.81; and
  • The ‘accommodation offset’ increased to £8.70.

Just as these new rates come into force for 2022, the Low Pay Commission has opened consultations on the NMW rates to apply from April 2023. Given current concerns about a significant hike in the cost of living, will this be reflected in larger than normal increases to the NMW? Time will tell.

Other changes to note
While we’re on the subject of rates changes, in relation to dismissals occurring on or after 6 April 2022:

  • the maximum ‘Compensatory Award’ for unfair dismissal rose from £89,493 to £93,878; and
  • the limit on a week's pay for statutory redundancy payment (SRP) purposes rose from £544 to £571 (meaning the maximum SRP is now £17,130).

Finally, the basic rate at which Statutory Sick Pay is paid has increased from £96.35 to £99.35 per week and the flat rate at which statutory maternity pay is paid has increased from £151.97 to £156.66 per week.

If you need advice on any of these changes, please get in touch.

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