HR Update – Statutory rate and national living/minimum wage increases rises
Executive Summary
There will be further statutory rate and national minimum wage/living wage rises from April 2023, and the
government has taken steps to address a court ruling which conflicts with many part-year and
irregular worker contracts over pro-rated holiday. Please see below for further details.
1. Statutory Rate Increases
What’s Changing?
In April the following rates will apply:
• Statutory Sick Pay – increases to £109.40 from £99.35 per week (from 6th April ‘23)
• Maternity, Paternity, Adoption, Shared Parental and Parental Bereavement Pay
all increase to £172.48 from £156.66 per week (from 2nd April ‘23)
2. National Living/Minimum Wage Increases
What’s Changing?
The minimum wage per hour for workers will rise again. From 1st April ’23 the following
increases will apply;
National Living Wage (23 years and over)
• £10.42 per hour (from £9.50)
National Minimum Wage (see age bands below)
• £10.18 per hour (from £9.18) for those aged 21-22 years;
• £7.49 per hour (from £6.83) for those aged 18-20 years;
• £5.28 per hour (from £4.81) for those 16-17 years; and
• £5.28 per hour (from £4.81) for apprentices who are under 19 years or who are over 19
years and in their first year of apprenticeship.
Implications
Where salary increases are forced due to the above, this is likely to further narrow the gap
between lower skilled workers and those on the next salary band up, usually those at team
leader/supervisory level, and may force salary reviews for these workers too.
3. Holiday Entitlement Consultation
What’s New?
The government has launched a consultation on the holiday allocation for part-year and
irregular hour workers following a Supreme Court ruling that these type of workers shouldn’t
have their holiday capped at 12.07% or pro-rated a full-time worker.
The government is looking to address the issue of it being considered unfair for a part-year
or irregular hour worker (eg those on a zero hours contract) to have the same holiday
entitlement as a full-time worker through possibly introducing a holiday entitlement
reference period.
Consultation ends on 9th March ‘23.
Implications
Regardless of what employee contracts state and how many hours worked, technically
speaking at the moment those working part-year or irregular hours could seek to claim the
full statutory holiday entitlement of 5.6 weeks per year. This is until the law catches up with
itself and redresses the balance over what is fair and sensible in terms of the amount of
holiday given in comparison to full-time workers.
Further Advice
Should you have any questions, require any further information, please contact Jacqui Green on
07904 151008 or email [email protected].
READ MORE: NEWS: Tips for better health in the workplace
https://www.gov.uk/government/publications/minimum-wage-rates-for-2023