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  • Writer's pictureSusan Wakelin

Do you know the new statutory rates of pay for 2023/24?

Updated: May 25, 2023

Statutory rates of pay are reviewed for April each year, and it is important that employers understand what rates have changed and ensure that they increase payments on time and in the next payment period after the increase takes effect.

Although the increase in statutory rates will be difficult for some employers, they will go some way to help those on low-incomes to cope with the recent rises in the cost of living. Increased statutory rates this year include the National Minimum Wage and National Living Wage, as well as other statutory payments.


National Minimum Wage (NMW) and National Living Wage (NLW)


NMW and NLW from 1 April 2023:

  • £10.42 per hour NLW for workers aged 23 and over

  • £10.18 per hour NMW for workers aged 21 to 22

  • £7.49 per hour NMW for workers aged 18 to 20

  • £5.28 per hour NMW for workers aged 16 to 17

  • £5.28 per hour NMW for workers under 19 or over 19 for those in the first year of their apprenticeship


Family-friendly Statutory Pay Rates


Statutory maternity pay, statutory paternity pay, statutory adoption pay, statutory shared parental pay and statutory parental bereavement pay from 2 April 2023:

  • £172.48 per week (previously £156.66)


Statutory Sick Pay (SSP)


SSP from 6 April 2023:

  • £109.40 per week (previously £99.35)

The LEL remains unchanged at £123 per week.


Statutory Guarantee Pay (SGP)


SGP (the payment made to an employee where they are laid off) from 6 April 2023:

  • £35 per day on any day an employee is laid off to a maximum of a normal working week, every 13 weeks


Redundancy Award Limits


Maximum amount of weekly pay for the purpose of calculating redundancy pay from 6 April 2023:

  • £643 per week (previously ££571)

Maximum basic award for statutory redundancy pay from 6 April 2023:

  • £19,290 (previously £17,130)


Employment Tribunal Award Limits


Maximum amount of weekly pay for the purpose of calculating compensation for unfair dismissal from 6 April 2023:

  • £643 per week (previously ££571)

Maximum basic award for unfair dismissal from 6 April 2023:

  • £19,290 (previously £17,130)

Maximum compensation award for unfair dismissal from 6 April 2023:

  • £105,707 (previously £93,878) or 52 times weekly pay, whichever is the lower


Pension Allowances


Pensions annual tax-free allowance from 6 April 2023:

  • £60,000 per annum (previously £40,000)

Money purchase annual allowance from 6 April 2023:

  • £10,000 per annum (previously £4,000)

The lifetime allowance charge has been removed.


State Pension Rates


Single-tier pension rate is from 10 April 2023:

  • £203.85 per week (previously £156.20)


SWan HR Consultancy (London and Kent)


SWan HR is an HR consultancy that specialises in HR support for small to medium sized businesses in the South East.

"Where HR Succeeds, the Business Achieves"

SWan HR was founded by Susan Wakelin, MCIPD, who is a qualified HR professional with over thirty years' experience, from setting up, auditing and improving HR functions to management coaching and supporting organisations through difficult situations, transformation and change.


SWan HR provides a broad range of tailored HR services including an HR audit, HR advice, HR outsourcing, HR coaching and project work for all businesses.


Free HR consultation


Contact Susan Wakelin now to take advantage of a free half-hour consultation to talk through your initial HR concerns and how you can manage these going forward.


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