Employment Rates and Limits – updates from April 2023
In April each year employment related payments are generally increased. For this year, the following changes have been announced.
The Employment Rights (Increase of Limits) Order 2023, which sets out the annual increases to the awards in the Employment Tribunal, has just been published. The increases are based on the September 2022 retail prices index which increased by 12.6% since the previous year.
From 6 April 2023, the following increases will take effect for dismissals on or after 6 April 2023:
- Compensatory Award – the maximum compensatory award for unfair dismissal has increased from £93,878.00 to £105,707.00
- The basic award and redundancy payments– the cap for a week’s pay will increase from £571 to £643 per week
Other changes include:
The National Minimum Wage will increase as follows from 1 April 2023
- Age 23 or over (NLW rate): £10.42
- Age 21 to 22: £10.18
- Age 18 to 20: £7.49
- Age 16 to 17: £5.28
- Apprentice rate: £5.28
- Accommodation offset amount: £9.10
Statutory Sick Pay will increase from £99.35 to £109.40 per week from 10 April 2023.
Statutory maternity, paternity, shared parental and adoption pay will increase from £156.66 per week to £172.48 from 10 April 2023.
If you need any assistance with an employment matter, please contact Jo Cullen, Head of Employment on 020 8475 7401 or Josephine.Cullen@edslaw.co.uk