Each year, the compensation limits for certain employment claims are increased. From 06 April 2023, the following limits will apply:
A week’s pay for the basic award and redundancy payments will be £643, increasing from £571. This is approximately a 12.6% increase from 2022, a big jump from last year’s 4.96% increase.
As a result of the change to a week’s pay, the maximum statutory redundancy payment and unfair dismissal basic award will be £19,290, increasing from £17,130. This is approximately a 12.6% increase from 2022 and another large increase from last year’s 4.96% raise.
The maximum compensatory award for unfair dismissal will be £105,707, increasing by approximately 12.5% from 2022’s £93,878. Again, this is a large increase in comparison to last year, when the rate increased by 4.89%.
Finally, the minimum basic award for certain unfair dismissals, including health and safety dismissals, increases from £6,959 to £7,836 this year. That’s an approximately 12.6% increase year on year and another big jump from last year’s 4.89% increase.
NB, the new figures will apply where the event giving rise to the entitlement to compensation or other payment occurred on or after 06 April 2023.
From 06 April 2023, the rate of statutory sick pay will increase by approximately 10.11% to £109.40 per week, from £99.35 in 2022. This year’s rise is a big increase from last year’s 3.11%.
National Living Wage and National Minimum Wage
From 01 April 2023, the following hourly rates will apply:
Age 23 or over: £10.42, increasing around 9.68% from last year’s £9.50. This is a large increase in wages compared to last year’s 6.62% rise.
Age 21 to 22: £10.18, increasing from approximately 10.89% from £9.18. This is in line with last year’s 9.80% increase.
Age 18 to 20: £7.49, increasing around 9.66% from 2022’s £6.83. This is a big jump from last year’s 4.11% increase.
Age 16 to 17: £5.28, increasing around 9.77% from £4.81. Again, this is a big increase from last year’s 4.11%.
Apprentice: £5.28, increasing approximately 9.77% from £4.81 in 2022. This is not as large of a rise as last year, which saw an 11.86% increase in apprentice minimum wages.
From 02 April 2023, the weekly rate of statutory maternity, paternity, shared parental, adoption and parental bereavement pay will be £172.48. increasing from £156.66, or 90% of the employee’s average weekly earnings, whichever is lower.
Maternity allowance will also increase from £156.66 to £172.48. This is approximately a 10.09% increase from 2022, a big jump from last year’s 3.08%.
From 6th April 2023, the Vento bands will be updated to;
- A lower band of £1,100 to £11,200.
- A middle band of £11,200 to £33,700.
- For the most serious cases, the upper band of £33,700 to £56,200.