Below is our annual update on the changes to statutory rates which came into effect from 1st April 2022.
National Minimum Wage
| New Rate from 1 April 2022 | Old Rate | Increase | |
| National Living Wage | £9.50 | £8.91 | 6.6% |
| 21-22 Year Old Rate | £9.18 | £8.36 | 9.8% |
| 18-20 Year Old Rate | £6.83 | £6.56 | 4.1% |
| 16-17 Year Old Rate | £4.81 | £4.62 | 4.1% |
| Apprentice Rate (*) | £4.81 | £4.30 | 11.9% |
| Accommodation Offset | £8.70 | £8.36 | 4.1% |
(*) – The apprentice rate is for apprentices aged 16 to 18 and those aged 19 or over who are in their first year. All other apprentices are entitled to the National Minimum Wage applicable to their age.
Other Pay Updates
Statutory Family-Related Pay – The weekly rate of statutory maternity, paternity, adoption and shared parental pay increased on 6 April 2022 to £156.66 (up from £151.97).
Statutory Sick Pay –the weekly rate of statutory sick pay increased on 6 April 2022 to £99.35 (up from £96.35).
Statutory Redundancy Pay – weekly pay for the purpose of redundancy pay calculations will now be capped at £571, increasing from £544.
Tribunal Awards – The maximum possible statutory award for redundancy will increase to £17,130 (up from £16,320). The maximum compensatory award for ordinary unfair dismissal will increase to the lesser of 1 year’s pay or £93,878 (up from £89,493).
Please update your payroll systems to take account of the new rates and avoid potential penalties or public naming and shaming by HMRC!
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