April 2022 marks the annual increase in the current statutory payments and other employment limits, employers should ensure they are aware of these changes and make adjustments where appropriate.

From April 2022, there will be increases to statutory payments for time off work:

  • Maternity and adoption pay at the maximum prescribed rate will be increasing from £151.97 in 2021 to £156.66 per week on the 3rd April this year.
  • Paternity pay will also be increasing from £151.97 per week last year to £156.66 on the 3rd April
  • Shared parental pay will be increasing £151.97 per week last year to £156.66 on the 3rd April
  • Sick pay will be increasing from a weekly payment of £96.35 last year to £99.35 for 2022, from the 6th
  • The lower earnings limit will increase to the weekly rate of £123 for 2022, previously £120.

The new hourly rates for National Minimum Wage and National Living Wage as of 1st April are as followed:

  • For Apprentices – £4.81, increased from £4.30 in 2021.
  • For ages 16-17 – £4.81, increased from £4.62 in 2021.
  • For ages 18-20 – £6.83, increased from £6.56 in 2021.
  • For ages 21-22 – £9.18, increased from £8.36 for ages 21-24 in 2021.
  • National Living Wage (ages 23+) has increased to £9.50 and was previously £8.91 for ages 25 and over.

Changes in maximum compensation limits also apply from 6th April:

  • The limit on a week’s pay, previously set at £544 for 2021 will increase to £571 in 2022.
  • The maximum statutory redundancy payment which an employee may be entitled to has increased to £17,130 from £16,320 the previous year.
  • The maximum basic award for unfair dismissal which is calculated based on the employees age and length of service, has also increased to £17,130 from £16,320 the previous year.
  • The maximum compensatory award for unfair dismissal, previously set at £89,493 in 2021, has increased to £93,878 in 2022.*

* The maximum compensatory award is the lower of the statutory limit or 52 weeks’ actual gross pay at the time of dismissal. The limit will not apply where the reason for dismissal or redundancy selection is carrying out health and safety activities or making a protected disclosure.

Thank you to Izzy James for her help in drafting this blog post