The statutory rates for the UK’s National Living Wage, national minimum wage, maternity, paternity, adoption and sick pay have all increased this month – here’s what HR needs to know.
National minimum wage
Effective from 1 April 2023, the national minimum wage has risen as follows:
- For workers aged 23 or over: from £9.50 to £10.42 per hour
- For workers aged 21 to 22: from £9.18 to £10.18 per hour
- For 18 to 20-year-olds: from £6.83 to £7.49 per hour
- For 16 to 17-year-olds and apprentices: from £4.81 to £5.28 per hour
Katherine Chapman, director of the Living Wage Foundation, said that the statutory rates are the result of high levels of inflation.
The consumer price index rose by an annual 10.1%, according to March figures from the Office for National Statistics.
Speaking to HR magazine, Chapman said: “With inflation still in double digits, the significant rise in the national living wage that came into effect at the start of April is a welcome boost for the UK’s lowest paid employees at a time when it’s needed most.”
More on the minimum wage:
What does the minimum wage increase really mean for workers
Over 200 employers named and shamed for paying below minimum wage
Raising minimum wage won’t end in-work poverty
The minimum wage is still below the voluntary real Living Wage which is calculated based on living costs. The current real Living Wage is £10.90 across the UK and £11.95 in London.
Chapman said: “There are still 3.5 million employees in the UK earning below the real Living Wage.
“The good news is that record numbers of employers are signing up for real Living Wage accreditation as they recognise the importance of supporting employees.
“They are seeing the business benefits through reduced staff turnover, lower absenteeism rates and a more committed and motivated workforce.”
There are now over 12,500 Living Wage Employers in the UK.
Statutory leave pay
Statutory pay for different types of leave has risen as follows:
- Statutory sick pay: from £99.35 to £109.40 per week effective from 6 April 2023
- Statutory maternity pay, paternity pay, adoption pay, shared parental pay, parental bereavement pay and maternity allowance: from £156.66 to £172.48 per week, effective from 2 April 2023
Joanne Waterworth, head of employer services at working parents charity Working Families, said the rises will be beneficial to both employees and businesses.
Speaking to HR magazine, she said: “Ensuring that parents are fully supported financially can have significant business benefits, including increased engagement and staff retention, and better gender equality at all levels of an organisation.”
Waterworth encouraged employers to offer enhanced leave for new parents, with a focus on equality for both parents.
She added: “If you can, go above and beyond the government’s statutory provision, ideally with the same allocation and pay for both partners.
“We’ve seen particularly progressive employers offer 26 or more weeks of fully paid leave to either parent, which promotes equality in the workplace.
“Offering generous leave policies like this can establish an organisation as an employer of choice for parents, enabling these employers to compete for and secure the best talent.”
