As is usual for the start of a new tax year, various rates and calculation figures have recently increased.
Some of these figures have increased quite significantly where part of the new calculation is based on inflation figures which, as we all know, have been significantly higher in recent months than across previous years.
In this article, Employment Solicitor Chris Dobbs outlines the new rate changes and what they mean for you.
Statutory Rate Changes
Statutory maternity (SMP), paternity (SPP), adoption (SAP), parental bereavement (SPBP) and shared parental (ShPP) pay rates all increase from £156.66 to £172.48 per week.
What will SSP rates be from April 2023?
Statutory sick pay (SSP) will increase from £99.35 to £109.40 per week.
What is the new National Minimum Wage in 2023?
National Minimum Wage rates increase as follows:
21-22 year olds | £9.18 to £10.18 |
18-20 year olds | £6.83 to £7.49 |
16-17 year olds | £4.81 to £5.28 |
Apprentices | £4.81 to £5.28 |
Accommodation Offset | £8.70 to £9.10 |
The National Living Wage is also set to increase from £9.50/hour to £10.42 per hour.
Tribunal Award Payments
The 2023 Order which allows for increased rates in the ‘compensatory award’ (unfair dismissal) and value of a ‘week’s pay’ has now been issued.
From 06 April (and therefore generally applicable to dismissals which take place on or after that date), the new rates are:
Compensatory Award - from £93, 878 increased to £105,707
A ‘week’s pay’ for calculating the basic award and redundancy – from £571 increased to £643
The bulk of a discrimination award is often ‘injury to feelings’ which are based on the well-established Vento guidelines originally based on a case of that name.
Periodically the ‘bands’ of award are increased under Tribunal Presidential Guidance. The new rates from 06 April are:
Lower band: £1,100 to £11,200
Middle band: £11,200 to £33,700
Upper band of £33,700 to £56,200- the most exceptional cases capable of exceeding £56,200
What does this mean for employers?
Chris Dobbs, Employment Solicitor at Frettens, said: “In terms of rate increases, there’s nothing out of the ordinary here as these rates increase at the start of every new tax year.
As long as employers are aware of what the new statutory rates are, and make updates to any contracts to reflect these changes where necessary, there shouldn’t be any problems.
The rise in tribunal award payments will perhaps prompt employers to take caution and review their employment law procedures to ensure they’re fair and legal.
As always, if you would like any advice on a claim, or any other employment law matter, please feel free to get in touch with us.”
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Employment & HR Solicitors
If you have any questions following this article, or would like to speak to a member of the team, please don’t hesitate to get in touch with our bright Employment Experts.
Call us on 01202 499255, or fill out the form at the top of this page, for a free initial chat.
We also offer a host of tailored Employment Training Courses for new and experienced employers on disciplinary issues, claims, redundancies and more. Find out more here.
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