• Greenline Accountants

April 22 - Changes to National Living Wage, National Minimum Wage, NI and Statutory Payments


April 2022 will see increases to the National Minimum & Living Wage introduced and employers must ensure they are meeting the new minimum thresholds depending on the age of their employees, outlined below.


AGE

Rate from 01/04/21

Rate from 01/04/22

% Increase

Workers age 23 and over (NLW)

£8.91

£9.50

6.60%

21-22

£8.36

£9.18

9.80%

18-20

£6.56

£6.83

4.10%

16-17

£4.62

£4.81

4.10%

Apprentices under 19, or over 19 and in the first year of the apprenticeship

£4.30

£4.81

11.90%

Family friendly statutory payments From 3 April 2022 family friendly payments increase to £156.66 from £151.97 (including shared parental, maternity, adoption, paternity, and parental bereavement pay). These apply to those away from work on paid family leave, from the date of the increase.


Statutory sick pay (SSP) and the lower earnings limit (LEL) The LEL will increase for the first time in two years, rising from £120 to £123 from 6 April 2022. SSP will increase then from £96.35 to £99.35.


National Insurance (NI) Another change is the increase to NI by 1.25% from April 2022. HMRC have asked employers to include the following on all payslips between 6 April 2022 and 5 April 2023: “1.25% uplift in NICs funds NHS, health and social care”, which will remind employees why this has happened. There is no obligation for employers to cover the difference in net pay, however specifying the change is government mandated may help employees understand.