As 1 April gets closer, make sure you are up to date with the changes in minimum wage rates and other statutory payments for the tax year 2022/2023…
It is not long until April, and of course for anyone involved in HR or employing people, knowing the annual change in rates for the National Living Wage and other statutory payments is vital. Below we outline what you need to know:
National Living Wage
From 1 April 2022, the National Living Wage (NLW) will increase from £8.91 per hour to £9.50. This is more than twice the 3.1% cost of living and means that anyone aged 23 or over should receive a pay rise of 6.6%.
For younger workers the rates are different but they will still see a pay rise. The National Minimum Wage (NMW) is set to increase from £8.36 an hour to £9.18 an hour for workers aged 21 and 22.
The rate rises from £6.56 to £6.83 for anyone aged 18 to 20, while under 18s will see their Minimum Wage increase from £4.62 to £4.81.
The apprentice rate rises from £4.30 to £4.81.
The above is demonstrated here in a tabular format from Gov.uk:
National Insurance Contributions
From 6 April 2022, there will be a 1.25% increase in National Insurance Contributions. This applies to all working adults in the UK and is a rate that will also be matched by employers.
This increase will be used to help fund the NHS, health and social care.
Be aware that from April 2023, this 1.25% will need to be itemised separately on payslips under ‘Health and Social Care Levy’.
Statutory Pay for Parents
From 3 April 2022, Statutory Maternity Pay (SMP) after the standard six weeks of 90% of pay is £156.66 or 90% of the employee’s average weekly earnings, whichever is lower. Note the same rate also applies to Statutory Paternity Pay and Statutory Adoption Pay.
If you would like to discuss this subject further, please contact Cecily Lalloo at Embrace HR Limited.
T: 01296 761288 or contact us here.
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Based in Aylesbury, Buckinghamshire, Embrace HR Limited provide a specialised HR service to the care sector, from recruitment through to exit.