HR AND PEOPLE

If you own a pest control business and have a staff team, there are four statutory pay increases in the UK that you need to know about this year. 

National minimum wage rises

All rates of the national minimum wage will increase on 1 April 2023.

The national living wage will rise from £9.50 to £10.42 an hour, an increase of 9.7%.

The national living wage rate applies to workers aged 23 and over, and the main (adult) rate applies to workers aged 21 to 22.

The rates for younger workers will also increase, with hourly rates rising to:

• £10.18 for workers aged 21 and 22;
• £7.49 for workers aged at least 18 but under 21
• £5.28 for workers aged under 18 who are no longer of compulsory school age.

The rate for apprentices will rise to £5.28 an hour.

Cap on a week’s pay for statutory redundancy pay increases

The maximum amount of a week’s pay for the purposes of calculating statutory redundancy pay is adjusted each year in line with changes to the retail prices index (RPI).

If the index for September is higher or lower than the index for the previous September, the maximum amount of a week’s pay increases or decreases by the same percentage as the amount of the increase or decrease of the index, with the change coming into effect on 6 April the following year.

Comparing the index for September 2022 with the index for September 2021, the new maximum amount of a week’s pay from 6 April 2023 is estimated to be £645. The current maximum is £571.

The new amount will be confirmed in the draft Employment Rights (Increase of Limits) Order 2023, which should be published some time in February.

Statutory maternity pay increases

For the first six weeks of an employee’s maternity leave, statutory maternity pay (SMP) is paid at 90% of the employee’s average weekly earnings.

For the remaining 33 weeks, SMP is paid at either the flat SMP rate (which changes annually on the first Sunday in April), or 90% of the employee’s average weekly earnings if this is lower.

From 2 April 2023, the proposed new rate is £172.48, up from £156.66. The same rate will apply to statutory adoption, paternity and shared parental pay.

Statutory sick pay increases

Entitlement to statutory sick pay (SSP) arises when an employee is sick for four or more consecutive days, and lasts for up to 28 weeks in relation to any one period of incapacity for work.

From 6 April 2023, the new rate is £109.40, up from £99.35.

GOT QUESTIONS?

If you're a BPCA member and you'd like some advice about the changes, get in touch. 

enquiry@bpca.org.uk