Updates on employment statutory rates and compensation limits
4th May, 2023
National Minimum Wage
Who does the rate apply to? |
New rate from 1st April 2023 |
Increase from previous rate |
| Workers aged 23 and over | £10.42 per hour | £0.92 |
| Workers aged 21-22 inclusive | £10.18 per hour | £1.00 |
| Workers aged 18 – 20 inclusive | £7.49 per hour | £0.66 |
| Workers aged 16 and 17 | £5.28 per hour | £0.47 |
| Apprentices aged under 19, or aged 19 and over but in the first 12 months of their apprenticeship | £5.28 per hour | £0.47 |
| Accommodation off-set (the maximum deduction per day from the NMW where the employer provides accommodation) | £9.10 per day | £0.40 |
Parents
Maternity pay |
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Period |
Amount of pay |
Comparison with last year’s rate |
| First 6 weeks | 90% of the employee’s normal weekly earnings | |
| Subsequent 33 weeks | £156.66 each week or 90% of the employee’s normal weekly earnings, whichever is lower. | £156.66 represents a £4.69 increase from last year’s rate. |
Maternity AllowanceMaternity allowance is payable to women who are not entitled to statutory maternity pay because they are either low-paid or self-employed. |
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| Up to 39 weeks | £156.66 each week or 90% of the employee’s normal weekly earnings, whichever is lower. | £156.66 represents a £4.69 increase from last year’s rate. |
Paternity pay |
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| Up to 2 weeks | £156.66 each week or 90% of the employee’s normal weekly earnings, whichever is lower. | £156.66 represents a £4.69 increase from last year’s rate. |
Statutory adoption pay |
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| First 6 weeks | 90% of the employee’s normal weekly earnings | |
| Subsequent 33 weeks | £156.66 each week or 90% of the employee’s normal weekly earnings, whichever is lower. | £156.66 represents a £4.69 increase from last year’s rate. |
Shared parental pay |
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| Up to 39 weeks
Less any weeks spent by the child’s mother or adopter in receipt of Statutory Maternity Pay, Maternity Allowance or Statutory Adoption Pay |
£156.66 each week or 90% of the employee’s normal weekly earnings, whichever is lower. | £156.66 represents a £4.69 increase from last year’s rate. |
Parental bereavement pay |
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| Maximum of 2 weeks
This can be taken in periods of one week or two consecutive weeks, or two separate weeks. |
£156.66 each week or 90% of the employee’s normal weekly earnings, whichever is lower. | £156.66 represents a £4.69 increase from last year’s rate. |
Sickness
| Up to 28 weeks
This can be a series of up to three separate periods of incapacity spanning up to 3 years |
£109.40 each week | Increase of £10.05 from last year’s rate. |
Changes to employment tribunal awards: April 2023 – April 2024
Week’s pay |
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Award |
Minimum |
Maximum |
| The maximum amount of a ‘week’s pay’
Used to calculate statutory redundancy pay and various other payments (e.g. the basic award for unfair dismissal) |
No minimum | £643 |
Unfair dismissal |
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| Unfair dismissal basic award |
No minimum
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£19,290 |
Unfair dismissal basic award where the principal reason for dismissal is:
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£7,836 | £ 19,290 |
| Unfair dismissal compensatory award | No minimum | £105,707 (the upper limit remains the lower of a year’s salary or the maximum statutory limit) |
| Unfair dismissal compensatory award where dismissal is connected with health and safety or public interest disclosure
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No minimum | No maximum |
Redundancy |
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| Statutory redundancy payment
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No minimum | £19,290 |
Injury to feelings: Vento Bands |
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There are three potential ‘bands’ for awards to be given where there has been injury to an employee’s feelings:
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No Minimum | Lower band: £1,100- £11,200
Middle band: £11,200-£33,700
Top band: £33,700-£56,200 |