As a business owner in Kent or London, are you aware of the changes to HR pay rates that come into effect every April? It’s important to stay on top of these changes to ensure that you are paying your employees the correct wages and benefits. At Kent and London HR, we understand the importance of keeping up with these changes and we want to help you stay informed.
HR Pay Rates
1. Minimum Wage
Starting from 1 April, the National Minimum Wage and National Living Wage will increase. The new rates are as follows:
- National Living Wage (age 25+): £10.42
- 21 – 22 Year Old Rate: £10.18
- 18 – 20 Year Old Rate: £7.49
- Over CSA – 17 Year Old Rate: £5.28
- Apprentice Rate: £5.28
It’s crucial to make sure that you’re paying your employees the correct rate for their age group to avoid any potential legal issues.
2. Sick Pay
In addition to the changes in minimum wage rates, Statutory Sick Pay will also be increasing from 6 April. The new rate will be £109.40 per week. If you have employees who are off sick, it’s important to ensure that you are paying them the correct amount.
3. Maternity & other parental leave
If you have employees who are expecting a baby or who are adopting a child, you should also be aware of the changes to Statutory Maternity/Paternity/Adoption/Shared Parental/Parental Bereavement Pay. From 2 April, the rate will be increasing to £172.48 per week.
4. Increased Weekly Pay Allowance
Another important change to HR pay rates is the increase in the maximum week’s pay to count for redundancy pay and for unfair dismissal basic award. From 6 April 2023, the maximum will be £643 per week, which is an increase of £72. This is a significant change and it’s important to ensure that you are calculating redundancy pay and unfair dismissal awards correctly.
5. Statutory Guarantee Pay
Statutory guarantee pay, which is the daily rate paid when an employee is on lay off for a maximum of 5 days in each 13 week period, will also be increasing from 6 April. The new rate will be £35 per day.
6. Unfair Dismissal
Finally, if you have employees who are at risk of unfair dismissal, it’s important to be aware of the changes to the maximum unfair dismissal compensation. The maximum basic award will be £19,290, and the maximum compensatory award will be 52 weeks’ pay but capped at an increased amount of £105,707. The total maximum unfair dismissal amount will be £124,997.
At Kent and London HR, we understand that keeping up with the changes to HR pay rates can be time-consuming and confusing. That’s why we’re here to help. We can provide expert advice and guidance to ensure that you’re complying with all the necessary HR rates and regulations. Don’t let these changes catch you off guard – contact us today to see how we can help your business.