What Are Statutory Pay Rates 2023

What Are Statutory Pay Rates 2023

Statutory pay rates typically change in April each year, so many business owners will be wondering what are statutory pay rates 2023 to 2024?

So far, 2023 has seen significant changes to the Employment Law landscape. There are thirteen bills that have either passed or are under consideration within House of Commons and the House of Lords. Some of these changes include the increase to the National Minimum Wage and other statutory minimum entitlements including Sick Pay, Redundancy Pay and Adoption, Maternity, Paternity and Shared Parental Leave .

It is important you are aware what your staff are entitled to.

What are Statutory Minimum Entitlements?

Statutory Minimum Entitlements are the minimum legal rights that an employee is entitled to receive from their employer. Entitlements like Annual Leave, Statutory Sick Pay and Notice periods are all examples of Statutory Minimum Entitlements.

What has changed?

As of April 2023, the following changes will come into effect:

1. Increase to the National Minimum Wage and National Living Wage – 1^st April 2023
2. Increase to the flat rate of Statutory Adoption, Maternity, Paternity and Shared Parental Pay – 6^th April 2023
3. Increase to Statutory Sick Pay – 6^th April 2023
4. Increase to Redundancy/Lay-Off Statutory Pay – 6^th April 2023

Increase to the National Minimum Wage

The National Minimum Wage and National Living Wage increased on 1^st April 2023. Employees each fit into an Age bracket and should be paid the following:

• For those aged 23 & over – National Living Wage rises to £10.42 per hour 
• For 21 and 22 year olds the rate will be £10.18 per hour
• For those aged 18 – 20 it will be £7.49 per hour
• For those under 18 it will be £5.28 per hour
• The apprentice rate will rise to £5.28 per hour.

Find out more about the National Minimum Wage in this free resource.

Increase to Statutory Adoption, Maternity, Paternity and Shared Parental Pay 

The Family Friendly benefits of

• Adoption Pay
• Maternity Pay
• Paternity Pay
• Shared Parental Pay

Will increase as of 6^th April 2023. The flat rate of the statutory entitlements listed above will rise from £156.66 to £172.48 per week.

Increase to Statutory Sick Pay

Employees will see an increase to the weekly amount when receiving Statutory Sick Pay (SSP). SSP entitles employees to £99.35 per week when they are too ill to work. The rate of statutory sick pay will increase to £109.40 as of 6^th April 2023.

Find out more about Statutory Sick Pay on the Gov website here.

Increase in Redundancy and Lay-Off Statutory Pay

Both the Redundancy and Lay-Off statutory pay will rise as of 6^th April 2023.

In the event of a redundancy situation arising the limit on weekly amount payable to an employee will rise to a cap of £643 per week.

There is further an increase in statutory Lay-Off pay from the 6^th April 2023 which will sit at £35 per day for 5 days only in any 3-month period. The maximum an employee is entitled to is £175.

The increases to The Statutory Minimum Entitlements above will affect all businesses. You may need professional advice if you are unsure about any of the information listed above. We offer a range of support packages at NORI HR and Employment Law to help with implementing changes. Find out more about our services here.