The Government has announced increases in statutory payment rates to employees which represent an increase of 10% on the rates for 2022/2023. These increases in certain payments will take effect from April 2023. National Minimum Wage (NMW) and National Living Wage (NLW) will increase from 1 April 2023. For Statutory Maternity Pay (SMP), Statutory Paternity Pay (SPP), Shared Parental Pay (ShPP) and Statutory Adoption Pay (SAP), the change will come into effect on 2 April 2023. Whilst Statutory Sick Pay (SSP) will increase on 6 April 2023. To be entitled to these statutory payments, the employee’s average earnings must be equal to or more than the lower earnings limit.

The Government has confirmed there is no change to the earnings threshold, as follows:

• From 3 April 2023, in order to qualify for maternity pay, paternity pay, shared parental pay, adoption pay and parental bereavement pay, employees must earn on average £123.00 per week (alongside other eligibility requirements).
• From 6 April 2023, in order to quality for Statutory Sick Pay, employees must earn on average £123.00 a week (alongside other eligibility requirements).

Employers should ensure that they are paying employees correctly and that the correct rate of pay is being applied to all employees within the different age bands. It is a criminal offence for employers to pay workers less than the applicable minimum wage.

If you have any queries regarding the increases in statutory payment rates, or if you would like support or advice regarding employment law, please get in touch with a member of the ViewHR team today.