It is that time of year again, when the employment law rates and limits increase. This year we have seen a significant jump in terms of both national minimum wage and family related pay rates.
Here is our summary of the most important changes:
National Minimum Wage
The rates which will apply from 1 April 2023 are as follows:
National Living Wage £10.42 (up from £9.50)
21-22 Year Old Rate £10.18 (up from £9.18)
18-20 Year Old Rate £7.49 (up from £6.83)
16-17 Year Old Rate £5.28 (up from £4.81)
Apprentice Rate £5.28 (up from £481)
https://www.gov.uk/government/publications/minimum-wage-rates-for-2023
The government has also said they are committed to reducing the age band, so the national living which applies to workers aged 23 or over will apply to those aged 21 or over, so we will see how this develops!
Family Relates Paid Leave
From the 10th of April 2023 the prescribed statutory rate for maternity, paternity and adoptive leave will increase from £156.66 each week, to £172.48 each week.
Annual Tribunal limit increase
The compensatory award is the maximum amount a tribunal can award an employee who successfully wins an unfair dismissal claim. The maximum compensatory award applies to most unfair dismissal claims, but there is no maximum if the dismissal is automatically unfair. The amount was previously £93,878 to £105,707. Although the maximum compensatory award has increased, it is still limited to a payment of 52 weeks’ pay, if that is lower than the compensatory award.
This change will take effect from the 6th April 2023.
Please do contact us for further information.
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