Increase to Statutory Rates 2022

Increase to Statutory Rates 2022 – National Minimum Wage 

 

Current NMW Rate

 

NMW

Effective 1st April 2022

Apprentices

Those aged under 19 and also those aged over 19 but in their first year of an apprenticeship

 

£4.30

 

£4.81

Aged Under 16 – 17£4.62£4.81
Aged 18 – 20 £6.56£6.83
Aged 21 – 22 £8.36£9.18
Aged 23 and Over

(The National Living Wage)

 

£8.91£9.50

Increase to Statutory Rates 2022 – Family Related Time Off

Family-friendly statutory rates will increase from Sunday 3rd April 2022. The new rate will be £156.66 per week  for the following:

  • Statutory Maternity Pay (SMP)
  • Statutory Paternity Pay (SPP)
  • Statutory Adoption Pay (SAP)
  • Statutory Shared Parental Pay (ShPP)
  • Statutory Parental Bereavement Pay (SPBP)

The current rate is £151.97 until 2nd April 2022.

Statutory Maternity and Adoption Pay

The first 6 weeks are paid at 90% of the employee’s average weekly earnings calculated in the relevant period. Earnings are those where Class 1 National Insurance contributions are due.

The relevant period is 8 weeks before the qualifying week. There are many SMP calculators available to help employers work the correct figure out as it can become confusing.

The remaining 33 weeks (a total of 39 weeks’ pay) are paid at the statutory rate above.

Statutory Paternity Pay

The employee is entitled to one OR two weeks’ pay at the statutory rate, or 90% of their average earnings if they earn less than the statutory rate.

Statutory Shared Parental Pay

Unlike statutory maternity and adoption pay, there is no enhanced rate during the first six weeks. Where an employee does not earn the statutory rate, they will be entitled to 90% of their average earnings.

Increase to Statutory Rates 2022 – Statutory Sick Pay

The new statutory sick pay (SSP) rate from 6 April 2022 will be £99.35 per week.

The current rate until 5th April 2022 is £96.35.

SSP can only be paid for a maximum of 28 weeks in any one period.

Redundancy Payments

The cap on a week’s pay for the purposes of redundancy will increase to £571.00 from 6th April 2022.

The current cap on a week’s pay is £544.00 until 5th April 2022.

This means that when you are calculating redundancy payments, a weeks’ pay is capped at the current rate per week, therefore any earnings in excess of this are not counted.

The cap on unfair dismissal compensation will be limited to £93,878 from 6th April 2022

 

We are happy to help you further if you need HR advice about the increase to statutory rates 2022 in relation to the rights of your employees.

Contact us today on 01455 231982 | 07716 918272 or drop us a quick line through our contact form and we’ll contact you back. 

 

Business Planning, Payroll, Statutory Rates 2022

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