Statutory Rate Increases
Alan Kitto
The Government has announced the statutory rate changes that will take effect from 1st April 2022. The changes are as follows:
The Employee Personal Tax Allowance - £12,570 (making a standard tax code 1257L)
The higher rate tax rate (40%) applies from earnings in excess of £37,700,; the 45% rate applies to earnings in excess of £150,000
Statutory Maternity, Adoption and Shared Parental Pay will all be £156.66 or 90% of average earnings, whichever is the lower
Statutory Sick Pay will be £99.35 per week
A week’s pay for calculating redundancy pay will be capped at £571.00
The maximum compensatory award for unfair dismissal claims will be a year’s gross salary or £93,878 whichever is the lower
In addition, the following changes take effect to the National Minimum and National Living Wages:
Aged 23 and above - £9.50 per hour
Aged 21 to 22 - £9.18 per hour
Aged 18 to 20 - £6.83 per hour
Under 18 and Apprentices interior first year - £4.81 per hour
For more information on this or any other HR matter, please give us a call.