As has become the norm the National Minimum Wage and National Living Wage rates are set to change on 1 April 2022. There are some quite significant changes this year with changes to three of the rate categories being over a 6.5% increase on the previous year. The table below shows the current rate, new rate and the percentage increase.
| Current hourly rate since April 2021 | New hourly rate applicable from 1 April 2022 | Increase | |
| National Living Wage (23 years old and over) | £8.91 | £9.50 | 6.6% |
| National Minimum Wage adult rate (21-22 years old) | £8.36 | £9.18 | 9.8% |
| National Minimum Wage (18-20 years old) | £6.56 | £6.83 | 4.1% |
| National Minimum Wage (16-17 years old) | £4.62 | £4.81 | 4.1% |
| National Minimum Wage (apprentice rate 1st year only) | £4.30 | £4.81 | 11.9% |
| Accommodation Offset | £8.36 | £8.70 | 4.1% |
While you may already have some employees who are paid on the minimum rates, the size of the increases this year may also bring other employees into scope if you have been paying them at slightly above the minimum rates. As a consequence, it is essential to make sure that you check those staff and not just the ones you know are at minimum wage rate. Failure to pay the minimum wage renders you as an employer liable for payment of any arrears you are found to owe plus a fine and being publicly named and shamed by HMRC.
In addition to the above changes there will also be increases from April to the statutory pay rates that typically affect your employees as detailed below.
| Current weekly rate | New weekly rate | Increase | |
| Statutory sick pay | £96.35 | £99.35 | 3.11% |
| Statutory maternity pay | £151.97 | £156.66 | 3.09% |
| Statutory paternity pay | £151.97 | £156.66 | 3.09% |
| Statutory shared parental pay | £151.97 | £156.66 | 3.09% |
| Statutory adoption pay | £151.97 | £156.66 | 3.09% |
Again, you should ensure that you increase these payments for any of your staff as applicable and if you have the exact figures detailed in your policies or your staff handbook then now is the time to update those documents too.
Do you have questions about minimum wage and statutory rates?
Give us a call at CUBE HR on 01282 678321, we’ll be happy to advise you and we have policies and templates available to meet every HR need.
Why not check out our blog on a similar topic Are you guilty of underpaying employees?
We also have a YouTube channel with loads of handy videos
