April 2022 National Minimum Wage and National Living Wage changes
The beginning of April sees the annual increases in the National Minimum Wage (NMW) and National Living Wage (NLW) as outlined below.
| Rate from 1 April 2022 | Previous Rate from 1 April 2021 | |
| NLW for workers aged 23 and over (National Living Wage) | £9.50 | £8.91 |
| NMW main rate for workers aged 21-22 | £9.18 | £8.36 |
| NMW for workers aged 18-20 | £6.83 | £6.56 |
| NMW for workers aged 16-17, above school leaving age but under 18 | £4.81
| £4.62
|
| NMW rate for apprentices (under 19 or 19 or over in the first year of their apprenticeship) | £4.81 | £4.30 |
We will automatically amend both the NMW and NLW rates, assuming they are applicable to you. The new rates will apply to the first pay reference period that begins on or after 1 April 2022. However, you may wish to inform your employees of these increases in advance of them being paid.
There are also increases to Statutory Payments which will take effect from the first Sunday in April which is 3 April 2022.
The changes are:-
- The weekly rate of Statutory Sick Pay will increase from £96.35 to £99.35
- Standard weekly rates of Statutory Maternity Pay, Statutory Adoption Pay, Statutory Paternity Pay, Statutory Shared Parental Pay and Statutory Parental Bereavement Pay will increase from £151.97 to £156.66
National Insurance Increases
From 6 April 2022 there will be a temporary 1.25% National Insurance Increase for both Employer and Employees. From 6 April 2023 the 1.25% increase will be legislated separately as a ‘Health and social care levy’ to help fund the NHS, health and social care.
| Tax Year | Employee Rate | Employer Rate |
| Current 2021-22 | 12% | 13.8% |
| 2022-23 | 13.25% | 15.05% |
| 2023-24 | 12% 1.25% Levy | 13.8% 1.25% Levy |
If you require any additional information on any of the above please email payroll@simpson-wood.co.uk
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