Stay updated with the rising employment rates and limits

As April approaches, businesses should ensure they are ready for the annual increases to the employment rates and limits which are set to take effect.

From 1st April 2022, National Living Wage and National Minimum Wages rates will rise as follows:

  • National Living Wage: £9.50
  • 21-22 year old rate: £9.18
  • 18-20 year old rate: £6.83
  • 16-17 year old rate: £4.81
  • Apprentice rate: £4.81
  • Accommodation offset: £8.70

From 3rd April 2022, Statutory Maternity Pay, Statutory Paternity Pay, Statutory Shared Parental Pay and Statutory Adoption Pay will increase to a weekly rate of £156.66,

From 6th April 2022 Statutory Sick Pay will increase to a weekly rate of £99.35.

There will be no changes to an employee’s personal allowance or income tax brackets.

As usual, there will be an increase in the limits that apply to compensation payments where employment is terminated. These new limits will apply to dismissals that take effect from 6th April 2022.

  • The cap on a week’s pay for the purposes of calculating a statutory redundancy payment or an unfair dismissal basic awards will rise to £571.
  • The cap on an unfair dismissal compensatory award will rise of £93,878.

If businesses are contemplating dismissing a member of staff, where possible it would be sensible to ensure the dismissal takes effect prior to 6th April so that it is not caught by the new limits.

If you would like further advice and our support with this, we would be happy to guide you through the process. Contact our employment team today.


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