April 2023 Statutory Increases

April 2023 Statutory Increases

As of April 2023, The UK’s Employment Laws have changed regarding the minimum rates of pay, statutory sick pay and statutory family-related pay in order to keep up with the current rates of the UK’s Cost of Living.

As such, our Small Business Community need to make adjustments around the following April 2023 statutory increases:

National Living Wage (NLW) / National Minimum Wage (NMW)

Increased Statutory Family Related Pay and Statutory Sick Pay

It should be noted that for the Parental Related Pay (Maternity, Paternity, Adoption, etc), the minimum weekly amount an individual must earn to be entitled to these payments will remain at £123.

Employers who have employees on sickness absence, or maternity leave etc, in the run-up to April 2023, must remember to factor in the increases for these employees where their absence continues past the rate change date, as well as employees who go on sick leave, maternity leave etc. after the new rates are in place.

Increases to other employment limits and statutory payments

The limits in relation to unfair dismissal/redundancy pay are increasing as follows:

• England and Wales unfair dismissal/redundancy pay: From 6 April 2023, the limit on a statutory week’s pay will increase to £643 (up from £571). This means that the maximum statutory redundancy payment and unfair dismissal basic award will be £19,290. The cap on the compensatory award for unfair dismissal will increase from £93,878 to £105,707.
• Northern Ireland unfair dismissal/redundancy pay: From 6 April 2023, the limit on a statutory week’s pay will be £669 (up from £594). This means that the maximum statutory redundancy payment and unfair dismissal basic award will rise to £20,070. Meanwhile, the cap on the compensatory award for unfair dismissal will increase from £94,063 to £105,915.

What Do You Need to do As An Employer?

• To ensure you’re up to date with the April 2023 statutory increases and changes, it’s important to review your pay rates to ensure that they reflect the new rates of pay from 1st April 2023.
• Ensure that anyone currently on any statutory payment benefits is given the correct rate from 6th April 2023.
• Update your policies where required with the increase in statutory rates.

If you need help with your statutory pay or advice from one of our HR experts, then why not talk to our friendly team by booking a call with us here? Plus, we have a FREE download with everything you need to know about the Employment Law Changes & Checklist in 2023.