The start of April is the start of a new financial year for many companies, and with so much going on, it’s easy to miss the changes to rates of pay. We’ve therefore detailed a couple of the most relevant changes below.

From 1 April 2022 – National Living Wage and National Minimum Wage

The minimum hourly rate that workers are entitled to depends on their age and whether they are an apprentice. The rates change on 1 April every year. The rates for 2022-2023 are as follows:

April Changes to Pay Rates

Remember that apprentices are entitled to the National Minimum Wage for their age if they are both aged 19 or over and have completed the first year of their apprenticeship. Workers are also entitled to be paid the National Minimum Wage for their age, so companies should check whether a birthday may mean the worker falls into the next band.

From 3 (or 6) April 2022 – Family-related leave pay

The prescribed rates for various family-related pay are reviewed and, if necessary, raised every April (although the date that the change comes into effect changes from year to year).

The prescribed rate for 3 April 2022 to 2 April 2023 is £156.66 per week (or 90% of the employee’s normal weekly earnings, if lower). This applies to statutory maternity pay (after the first six weeks), statutory paternity pay, statutory adoption pay (after the first six weeks), shared parental pay and statutory parental bereavement pay.

April Changes to Pay Rates What Employers Need to Know

The prescribed rate for maternity allowance - for those who are not entitled to statutory maternity pay - will also rise to £156.66 per week (or 90% of the employee’s normal working earnings, if lower) but this will come into effect from 6 April 2022.

From 6 April 2022 – Statutory limit on a gross week’s pay

The statutory limit on a gross week’s pay will increase to £571. This is relevant for calculating a statutory redundancy payment, for example, and employers should be mindful of the increased limit if considering a redundancy situation.

From 11 April 2022 – Statutory sick pay

Statutory sick pay is the minimum weekly payment that qualifying employees who have been absent for four or more consecutive days should receive. This is reviewed and, if necessary, is raised every April (although the day for the changes to come into effect changes from year to year). For sick days between 11 April 2022 to 10 April 2023, the statutory sick pay rate is £99.35 per week.

Here to help

If you have any more questions or would like more information regarding the April changes to pay rates, you can contact our Employment Team below.

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