2022 New Statutory Rates

New compensation rates, family-friendly payments, statutory sick pay and national minimum wage coming in April 2022.

Compensation rates

These rates are reviewed and updated annually each April. Please note these apply only in England, Scotland and Wales. The limit on a week’s pay is a significant increase, as normally this is just a few pounds per year.  The new amounts were confirmed in the draft Employment Rights (Increase of Limits) Order 2022.

Payments                                                Current rateFrom 6th April 2022
Limit on guarantee payments£30£31
Limit on a week’s pay for calculating redundancy and unfair dismissal basic award£544£571
Maximum basic award for unfair dismissal and statutory redundancy payment (30 weeks’ pay subject to the limit on week’s pay)£16,320£17,130
Minimum basic award for dismissal on trade union, health and safety, occupational pension scheme trustee, employee representative and on working time grounds only£6,634£6,959
Maximum award for unlawful inducement relating to trade union membership or activities, or collective bargaining£4,341£4,554
Maximum compensatory award for unfair dismissalA year’s pay subject to max cap of £89,493A year’s pay subject to max cap of £93,878
Minimum compensation for employees excluded/expelled from trade union£10,132£10,628
Contract claims (if a claim for breach of contract (eg wrongful dismissal) is brought in an employment tribunal, compensation is capped at £25,000. If the claim is for more than £25,000, it can be made in the county court or high court£25,000£25,000

Family-friendly payments

These rates are reviewed and updated annually each April. In order to qualify for these payments, workers must earn over the lower earnings limit. Increases from April 2022 are proposals only, but are expected to be confirmed.

PaymentsCurrent rateFrom 3rd April 2022
Statutory shared parental pay (ShPP): Statutory rate or 90% of employee’s weekly earnings if this is lower.£151.97£156.66
Statutory maternity pay (SMP): First six weeks – 90% of employee’s average weekly earnings. Remaining weeks at the statutory rate or 90% of employee’s weekly earnings if this is lower.£151.97£156.66
Statutory adoption pay (SAP): First six weeks – 90% of employee’s average weekly earnings. Remaining weeks at the statutory rate or 90% of employee’s weekly earnings if this is lower.£151.97£156.66
Statutory paternity pay (SPP): Statutory rate or 90% of employee’s weekly earnings if this is lower.£151.97£156.66
Statutory parental bereavement pay (SPBP):         Statutory rate or 90% of employee’s weekly earnings if this is lower.£151.97£156.66

Statutory sick pay

Statutory Sick Pay will also rise on 6th April 2022 by 3.11%. This increase may have a knock-on effect on employers who offer enhanced or company sick pay schemes.

PaymentCurrent rateFrom 6th April 2022
Statutory sick pay£96.35£99.35
Lower earnings limit (per week)£120£123

National minimum wage

These are significant pay increases. Increasing pay at the bottom end of the pay scale will likely lead to a knock-on effect to increase pay levels above National Minimum/Living Wage levels.

AgeFrom 1st April 2021From 1st April 2022
Workers aged 25 and over (National Living Wage)
Workers aged 23 and over (National Living Wage)£8.91 an hour£9.50 an hour
Workers aged 21–24
Workers aged 21-22*£8.36 an hour£9.18 an hour
Development rates for workers aged 18–20£6.56 an hour£6.83 an hour
Young workers rate for workers aged 16–17£4.62 an hour£4.81 an hour
Apprentices under 19, or over 19 and in first year of the apprenticeship£4.30 an hour£4.81 an hour

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