Increases to statutory rates in 2023

Unpack the statutory rates that will be increasing in the new financial year.

  • Justine Yuen
    Justine Lou

Published

Updated

5 mins read

Keep up to date with the latest statutory rate increases in the UK

Contents

The new financial year is almost upon us. Anticipation is in the air as we expect the announcement of the 2023 Spring Budget by the Chancellor of the Exchequer, Jeremy Hunt, in the next few weeks. Remember this? Unlike last year, the UK has a sense of stability and a few things are certain. We know who the Chancellor will be in a fortnight, and a few statutory rates will be increasing. In this blog, we unpack everything you need to know to stay up to date with minimal hassle. Find out exactly which statutory rates will be increasing, when these changes will be happening and how you can best prepare for these changes. Let’s go.

Which rates will be updated in April?

The following statutory rates will increase between 1 to 6 April.

National Minimum Wage

The following rates will apply from 1 April 2023 onwards. Category of worker         |             Hourly rate Aged 23 and above (national living wage rate)     |     £10.42 Aged 21 to 22, inclusive    |     £10.18 Aged 18 to 20, inclusive    |     £7.49

Statutory Parental Bereavement Pay

This increased rate will apply from 2 April 2023. This will be a weekly rate of £172.48 or 90% of the employee’s average weekly earnings, whichever is lower. You can calculate an employee’s Statutory Parental Bereavement Pay using Basic PAYE tools or guidance on manual calculation. Extra leave or payGovernment guidance says that the business can offer more leave and pay but the business can only recover 2 weeks payment for each employee and for each death. You should make sure your Parental Bereavement Leave and Statutory Parental Bereavement Pay policies are clear and easily accessible to staff. If you are struggling to stay on top of all things policy management, Employment Hero’s self-serve system can help you keep track of who’s up to date and who might need a gentle nudge.

Statutory Maternity Pay

Statutory Maternity Pay for eligible employees can be paid for up to 39 weeks. The payment is scheduled into two parts:

  • A weekly rate for the first six weeks: this is 90% of the employee’s average weekly earnings.
  • After which there is a weekly rate for the remaining weeks: this will increase to£172.48 or 90% of the employee’s average weekly earnings, whichever is lower.

These rates will apply from 2 April 2023.

Statutory Sick Pay (SSP)

The weekly Statutory Sick Pay will be increasing to £109.40 and applies to all employees. If your employee has less than a full week’s worth of qualifying days, the SSP they get depends on the number of ‘qualifying days’ they work each week. These rates will apply from 6 April 2023 onwards.

Will we see any other rate rises in 2023?

With the Spring budget expected to be announced in the next few weeks, and the new financial year starting from 6 April 2023 to 5 April 2024, we expect a number of changes to follow. Stay up to date with the latest news with Employment Hero.

No 11 is the official residence of the Chancellor of the Exchequer No. 11 Downing Street is the official residence of the Chancellor of Exchequer. Image Credit: Metro UK

How can Employment Hero’s payroll software help businesses manage rate rises?

Get support with compliance and stay on top of your policy management with Employment Hero’s HRIS software. From reducing your admin time, to looking out for your team’s wellbeing and keeping them engaged, we can provide you with support across your HR and payroll needs. Including the ability to simplify your payroll with our self-serve system so you can keep things running smoothly across your business. And if you’re thinking of growing? We’ve got the solution for you, too. Book a demo with our friendly team to see how you can make the most of Employment Hero today. Other useful resources:

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