Changes to National Minimum Wage

By Laura Knowles

The rates of the national minimum wage increase on 1 April 2022. The hourly rates of the minimum wage increase from: £8.91 to £9.50 for workers aged 23 and over (the national living wage); £8.36 to £9.18 for workers aged 21 or 22; £6.56 to £6.83 for workers aged 18 to 20; £4.62 to £4.81 for workers aged under 18 who are no longer of compulsory school age; and £4.30 to £4.81 for apprentices under 19, or over 19 and in the first year of the apprenticeship.

Employers should check their pay rates against the new minimum wage rates and ensure that, where necessary, they increase remuneration for the first pay reference period beginning on or after 1 April 2022.

The weekly rates of statutory maternity, adoption, paternity, shared parental and parental bereavement pay increase to £156.66, up from £151.97. The increase takes effect on the first Sunday in April, which in 2022 is 3 April. The weekly rate of statutory sick pay also rises on 6 April 2022. The new rate is £99.35, up from £96.35. Remember to ensure if you have any staff on maternity, paternity, adoption, shared parental and parental bereavement leave, and staff on sick leave, are paid these new statutory minimum rates. If you have policies that mention the rates, such as maternity policies and sickness absence procedures these will need updating with the new rates.

Additionally, there are new limits on statutory redundancy pay which come into force on 6 April 2022:

• Employers that dismiss employees for redundancy must pay those with two years’ service an amount based on the employee’s weekly pay, length of service and age. The weekly pay is subject to a maximum amount, which is £571 from 6 April 2022 (increasing from £544).

Employers should ensure that calculations for statutory redundancy payments are made on the basis of this new maximum amount for redundancy dismissals on or after 6 April 2022.

If you need a review of any policies or procedures to ensure they meet legislation, please get in touch and we can arrange this for you.

About Laura Knowles

Laura is currently HR Business Partner at Second Chapter where she advises clients on a range of HR matters including performance management, disciplinary and grievance, attendance management, flexible working, and employee engagement. With a HR career spanning more than a decade, she has worked for A4E, Cambion Electronics, BresMed Health Solutions and Kirklees Council. Laura lives in Sheffield with her husband, two daughters and their two cats.