The Department for Work and Pensions (DWP) has published proposed increases to state pension and statutory sickness/parental pay rates for 2023/24. The below statutory weekly pay rates are expected to increase by 10.1% from 10 April 2023, as follows:
- statutory sick pay (SSP) increases from £99.35 to £109.40.
- statutory maternity pay (SMP) and maternity allowance increase from £156.66 to £172.48.
- statutory paternity pay (SPP) increases from £156.66 to £172.48.
- statutory shared parental pay (ShPP) increases from £156.66 to £172.48.
- statutory adoption pay (SAP) increases from £156.66 to £172.48.
- statutory parental bereavement pay (SPBP) increases from £156.66 to £172.48.
The minimum weekly earnings required (LEL) for a worker to be eligible for statutory sick pay and statutory parental pay remains at £123 for 2023/4.
The Autumn Budget confirmed that hourly National Minimum Wage (NMW) rates will increase by 9.7% from 1 April 2023 as follows:
- The National Living Wage, which applies to workers aged 23 and over, will rise from £9.50 to £10.42 per hour. The government stated this to be the largest ever cash increase in the UK’s National Living Wage.
- The National Minimum Wagerate for individuals:
- aged 21-22: increases from £9.18 to £10.18;
- aged 18-20: increases from £6.83 to £7.49; and
- under 18 increases from £4.81 to £5.28.
- The apprentice rate increases from £4.81 to £5.28.
Considerations
If your staff handbook, sickness policies and parental leave policies specifically mention any of the above rates, they will need to be reviewed and updated before the implementation deadline. You should also ensure that working arrangements and patterns do not inadvertently impact your organisation’s ability to comply with the National Minimum Wage obligations.
If you would like to discuss changes to your parental leave and sickness policies or are considering a NMW audit or review, please contact your usual member of our team, or Kathryn Dooks.
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