As usual, April brings with it various changes to the pay rates due to employees and workers up and down the country. Of particular note is the increase in our national minimum wage (NMW) rates.

Changes to the NMW

With effect from 1 April 2023, NMW rates increased as follows:

• ‘National Living Wage’ (23 and over) increased to £10.42;
• The NMW for those aged 21 to 22 increased to £10.18;
• The NMW for those aged 18 to 20 increased to £7.49;
• The NMW for those aged 16 to 17 increased to £5.28;
• The NMW for apprentices increased to £5.28; and
• The ‘accommodation offset’ increased to £9.10.

The government’s press release suggests that these increases could benefit over 2 million UK workers, increasing the annual earnings of those on the National Living Wage by as much as £1,600.

Other changes to note

While we’re on the subject of rates changes, in relation to dismissals occurring on or after 6 April 2023:

• the maximum ‘Compensatory Award’ for unfair dismissal rose from £93,878 to a rather sobering £105,707; and
• the limit on a week's pay for statutory redundancy payment (SRP) purposes rose from £571 to £643, which means that the maximum SRP is now £19,290.

Also with effect from 6 April 2023, the basic rate at which Statutory Sick Pay is paid has increased from £99.35 per week to £109.40 per week and the flat rate at which statutory maternity pay is paid has increased from £156.66 per week to £172.48 per week.

If you need advice on any of these changes, please get in touch.