Annual Increase in Statutory Payment Rates 2023- 2024
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Annual Increase in Statutory Payment Rates 2023- 2024
The Government has announced increases in statutory payment rates to employees which represent an increase of 10% on the rates for 2022/2023. These increases in certain payments will take effect from April 2023.
And as a reminder, the National Living Wage is now available to everyone aged 23 and above.
With effect from 1 April 2023 the National Living Wage and the National Minimum Wage will be as follows:
Age | Minimum rate |
23 and over (National Living Wage) | £10.42 per hour |
21-22 years old (Standard rate) | £10.18 per hour |
18-20 years old (Development rate) | £7.49 per hour |
16-17 years old (Young workers’ rate) | £5.28 per hour |
Apprentices (under 19 or 19 or over who are in the first year of an apprenticeship) | £5.28 per hour |
The Government has published the new statutory rates for maternity pay, paternity pay, shared parental pay, adoption pay and parental bereavement pay. The new rates below come into force on 2 April 2023.
Benefit | New rate |
Statutory Maternity Pay (SMP) – (payable for up to 33 weeks, after the first six weeks at 90% of average weekly earnings) | £172.48 per week (or 90% of the employee’s average weekly earnings if this figure is less than the statutory rate) |
Statutory Paternity Pay (SPP) – (payable for up to two weeks) | £172.48 per week (or 90% of the employee’s average weekly earnings if this figure is less than the statutory rate) |
Statutory Shared Parental Pay (ShPP) – (payable for up to 37 weeks) | £172.48 per week (or 90% of the employee’s average weekly earnings if this figure is less than the statutory rate) |
Statutory Adoption Pay (SAP) – (payable for up to 33 weeks, after the first six weeks at 90% of average weekly earnings) | £172.48 per week (or 90% of the employee’s average weekly earnings if this figure is less than the statutory rate) |
Statutory Parental Bereavement Pay (SPBP) –(payable for up to two weeks) | £172.48 per week (or 90% of the employee’s average weekly earnings if this figure is less than the statutory rate) |
Statutory Sick Pay (SSP)
The Government will increase Statutory Sick Pay (SSP) to £109.40 per week with effect from 6 April 2023.
Earnings Threshold 2023/24
The Government has confirmed there is no change to the earnings threshold, as follows:
- From 3 April 2023, in order to qualify for maternity pay, paternity pay, shared parental pay, adoption pay and parental bereavement pay, employees must earn on average £123.00 per week (alongside other eligibility requirements).
- From 6 April 2023, in order to quality for Statutory Sick Pay, employees must earn on average £123.00 a week (alongside other eligibility requirements).
Employers should ensure that they are paying employees correctly and that the correct rate of pay is being applied to all employees within the different age bands. It is a criminal offence for employers to pay workers less than the applicable minimum wage.
We are here to help
If you have any queries regarding the increases in statutory payment rates, or if you would like support or advice regarding employment law, please get in touch with experienced Employment Solicitor Elaine Abbs or call 01732 441125. To find out more about GatekeeperHR you can browse www.gatekeeperhr.co.uk, sign up for a free trial, or contact us.