As always, April brings a whole host of changes that employers should be aware of.
The National Living Wage for workers over the age of 23 is going up by 9.7 per cent and the National Minimum Wage for workers aged between 21 and 22 will increase by 10.9 per cent.
The exact amount of the increases will be:
This year will see a 10.1 per cent rise to all payments including benefits and the State Pension.
For example, the full rate of the new State Pension is going up from £185.15 to £203.85.
The rate for 2023/24 for statutory maternity (SMP), paternity (SPP), adoption (SAP), parental bereavement (SPBP) and shared parental pay (ShPP) will increase from £156.66 to £172.48 per week. Additionally, the rate of statutory sick pay (SSP) is also set to increase from £99.35 to £109.40 per week.
The minimum weekly amount an individual must earn to be entitled to these payments will remain at £123.
One the most significant differences employers will face will be the potential cost of making employees redundant and in the value of claims being brought to an employment tribunal for unfair dismissal. This is because the upper cap on a week’s pay for statutory redundancy payments will increase on 6th April 2023.
As these changes take effect from 6 April 2023, anyone made redundant after this date will be entitled to a higher payment.
Phone or email Coles Miller employment solicitor Hugh Reid for specialist legal advice on employment contracts, disciplinary procedures, terminating contracts of employment and making workers and employees redundant. He is based at our Poole town centre head office.