Are you prepared for Employment Law Rate changes in 2022
Is your business prepared for the increases to the National Minimum Wage, National Living Wage and other statutory payments in April 2022?
The National Minimum Wage and National Living Wage
Increases from April 2022 are as follows:
National Living Wage – £9.50 an hour
Workers aged 21-22yrs: £9.18 an hour
Workers aged 18-20yrs: £6.83 an hour
Workers aged 16-17yrs: £4.81 an hour
Apprentice rate: £4.81 an hour
Accommodation Offset: £8.70
Statutory Maternity Pay, Paternity Pay, Shared Parental Pay and Adoption Pay – Current Rates applicable until April 2022 – New rates from April 2022 to be announced
Statutory Maternity Pay – Statutory Maternity Pay is paid for up to 39 weeks. The weekly amount is:
90% of your average weekly earnings (before tax) for the first 6 weeks
£151.97 or 90% of your average weekly earnings (whichever is lower) for the next 33 weeks
Statutory Paternity Pay – £151.97, or 90% of your average weekly earnings (whichever is lower).
Statutory Shared Parental Pay – £151.97 a week or 90% of your average weekly earnings, whichever is lower.
Statutory Adoption Pay – Statutory Adoption Pay is paid for up to 39 weeks. The weekly amount is:
90% of your average weekly earnings for the first 6 weeks
£151.97 or 90% of your average weekly earnings (whichever is lower) for the next 33 weeks
Statutory Sick Pay up to April 2022 – new rates to be announced
Statutory sick pay (SSP) is currently £96.35 for up to 28 weeks
Social Care Tax – April 2022
The Government intends to introduce a new social care package that will be financed by a package of Tax increases.
There will be a rise in National Insurance Contributions of 1.25% for all working adults in the UK. This will be matched by employers though Employers NI contributions. The tax rates on shared dividends will raise by the same amount.
From 2023, it will become a separate tax on earned income from 2023, calculated in the same way as National Insurance and appearing on an employee’s payslip as a Health and Social Care Levy