As well as the introduction of the Health and Social Care Levy next month, National Minimum Wage rates will rise and the annual increase in employment tribunal limits will also take effect.
Health and Social Care Levy: Announced in last Autumn’s budget, for the year to 5 April 2023 this will amount to a 1.25% increase in the headline rate of employers’ and employees’ national insurance contributions, with the same rise being applied to class 4 contributions, paid by the self-employed. From 6 April 2023 onwards, the Government plans to separate out the Levy from NICs and it will also be applied to the earnings of individuals working above the state pension age.
National Minimum Wage: Also announced last Autumn, the top rate of the NMW (also known as the National Living Wage) will increase from £8.91 to £9.50 per hour with effect from 1 April. This rate applies to workers aged 23 and over. The lower rates, which apply to younger workers and apprentices, have also been increased.
Employment tribunal limits: The limit on a week’s pay will rise from £544 to £571. There are also similar inflationary increases in the other limits that are applied in the employment tribunal, including the maximum compensatory award for unfair dismissal, which rises to £93,878. These increases apply where the “appropriate” date (defined in the 2022 Increase of Limits Order) falls on or after 6 April 2022. In unfair dismissal cases this will be the effective date of termination.