Statutory Rate Increases
April 5, 2023
April of each year sees the increase in statutory rates including sick pay, maternity and paternity pay and national minimum wage. The key changes are outlined here.
National Minimum Wage and National Living Wage
| Age | From 1 April 2023 |
| 23 and over (NLW) | £10.42 |
| 21-22 | £10.18 |
| 18-20 | £7.49 |
| 16-17 | £5.28 |
| Apprentices under 19 (or over 19 and in the first year of the apprenticeship) | £5.28 |
Are you up to date with the new pay rates? Identify any employees that move into the next age bracket to make sure they are paid at the correct rate.
Statutory Sick Pay
The rate of Statutory Sick Pay (SSP) will increase from £99.35 to £109.40.
There is no change to the Lower Earnings Limit (LEL) which remains at £123.
Family friendly Statutory Payments
Family friendly payments will increase from 2nd April from £156.66 to £172.48. This includes:
- shared parental pay
- maternity pay
- adoption pay
- paternity pay
- parental bereavement pay
If you’re unsure how to apply any of the changes outlined, we can help. Get in touch here: Totally HR (totally-hr.co.uk)
Key compensation limits
The new compensation limit rates for 2023–24 have been confirmed as below:
| Payments | From 6 April 2023 |
| Limit on a week’s pay for calculating a statutory redundancy payment and unfair dismissal basic award | £643 |
| Maximum basic award for unfair dismissal and statutory redundancy payment (30 weeks’ pay subject to the limit on a week’s pay) | £19,290 |
| Maximum compensatory award for unfair dismissal (subject to a maximum cap of a year’s pay) | £105,707 |
