April rate increases employers need to know about

If you're an employer in the UK, you need to take note of the latest update to employment tribunal limits and other rate changes coming into force soon. 

Here's what you need to know about the changes:

Increase in statutory payments and maximum tribunal awards

There are some hefty increases taking effect from 6 April 2023 to reflect increases in the retail prices index (RPI) of 5.1% in September 2022. The RPI rates are considerably lower than the inflation rates which applied at the same date.

• The limit on a week’s pay will increase to £643 from its current rate of £571 (this is used to calculate statutory redundancy and other payments)
• The maximum statutory redundancy payment will increase to £19,290 from its current rate of  £17,130 (service is capped at 20 years' service)
• The maximum basic award for unfair dismissal will increase to £19,290 from its current rate of  £17,130 
• The maximum compensatory award for unfair dismissal will increase to £105,707 from its current rate of £93,878 (this only applies for dismissals that take effect from 6 April)

Increases in SSP, SMP and other statutory benefits

From April 2023, there will also be increases to statutory payments for time off work:

• From 2 April 2023 maternity, paternity, shared parental, adoption and parental bereavement pay will increase to a weekly payment of £172.48 from its current rate of £156.66 
• From 6 April 2023 sick pay will increase to a weekly payment of £109.40 from its current rate of £99.35 in the previous year
• The lower earnings limit will remain at a weekly rate of £123

National Minimum Wage and National Living Wage

From 1 April 2023 the new hourly rates for National Minimum Wage and National Living Wage are:

• For Apprentices – £5.28, increased from £4.81
• For ages 16-17 – £5.28, increased from £4.81
• For ages 18-20 – £7.49, increased from £6.83
• For ages 21-22 – £10.18, increased from £9.18
• National Living Wage (ages 23+) – £10.42, increased from £9.50

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