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Employment rates and limits changes from April 2023

It’s that time of year where the clocks go forwards, we start to feel the warmth of spring and various employment rates and limits increase.

Compensation limits

The Employment Rights (Increase of Limits) Order 2023 (‘the Order’) has been laid before Parliament and will revise compensation limits for certain tribunal awards and other statutory payments from 6 April 2023.

In cases involving unfair dismissal, the new figures will apply where the effective date of termination falls on or after 6 April 2023.

The Order includes the following new figures:

  • The maximum amount of a week’s pay for the purposes of calculating redundancy pay increases from £571 to £643.
  • The minimum basic award for certain unfair dismissals (including health and safety dismissals) increases from £6,959 to £7,836.
  • The maximum compensatory award for unfair dismissal increases from £93,878 to £105,707.

Family friendly pay

From 2 April 2023, the rate for statutory maternity, paternity, adoption, shared parental and parental bereavement pay will increase to £172.48 per week (previously £156.66).

From 6 April 2023, the rate for statutory sick pay will increase to £109.40 per week (previously £99.35).

Minimum Wage

From 1 April 2023, the National Living Wage (for those aged 23 and over) and the National Minimum Wage (for those of at least school leaving age) will change to:

  • 23 and over: £10.42 per hour (up from £9.50)
  • 21 to 22: £10.18 per hour (up from £9.18)
  • 18 to 20: £7.49 per hour (up from £6.83)
  • Under 18: £5.28 per hour (up from £4.81)

If you require any further information in relation to the above, please contact a member of the Employment and HR Team.


Disclaimer: this post has been produced for Napthens’ website blog and does not constitute legal advice.

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