The National Minimum Wage and National Living Wage and changing and various other increases will start at the beginning of the tax year 2022/23. So what are the new figures now?
As an example, if your employees get paid monthly on the 15th, the old rate will apply for that pay period and the increases will apply after the 16th, for the next pay period. It may be worthwhile explaining this to your staff before you get any grumbles.
From the 3rd of April 2022, family-friendly statutory payments also increase, changing to £156.66 rather than the £151.97 (including shared parental, maternity, adoption, paternity, and parental bereavement pay) it was set at previously.
The Lower Earnings Limit (LEL) increases from £120 to £123 from the 6th of April 2022 and Statutory Sick Pay (SSP) grows from £96.35 to £99.35. National Insurance (NI) increases by 1.25% as well.
HMRC has asked all employers to include the words "1.25% uplift in NICs funds NHS, health and social care" on all payslips between the introduction on the 6th of April 2022 until the 5th of April 2023.
We're at the end of March now and April 2022 is nearly upon us. You need to act now to ensure your payroll is updated ready for the increases in the National Minimum Wage and other payments. Remember, different changes apply from different days in early April, so take care to ensure you get everything correct.
If you feel inspired to find out more about anything I've said here, do call me on 01908 774320 or leave a comment below and I'll be in touch as soon as I can.