The UK government has confirmed the dates and figures for the upcoming statutory rate changes in 2023-2024.

These changes will affect maternity, paternity, adoption, shared parental, parental bereavement pay, and sick pay.

It is important for employers to review their HR processes and contract variation letters in order to comply with these changes.

Statutory Maternity & Adoption Pay – Rates apply from 02 April 2023

From 02 April 2023, the weekly Statutory Maternity Pay rate for the first 6 weeks will remain as 90% of the employees average weekly earnings. For preceding weeks, the rate will increase from £156.66 to £172.48 or 90% of the employee’s average weekly earnings, whichever is lower.

The weekly Statutory Paternity Pay rate will increase from £156.66 to £172.48 or 90% of the employees average weekly earnings, which ever is lower.

Statutory Paternity, Shared Parental and Parental Bereavement Pay – Rates apply from 02 April 2023

The weekly Statutory Adoption Pay rate for the first 6 weeks, will remain as 90% of the employees average weekly earnings. However, for the remaining weeks, the rate will increase from £156.66 to £172.48 or 90% of the employees average weekly earnings, whichever is lower. This rate will also start from the 02 April 2023.

From 02 April 2023, the weekly rate for Statutory Shared Parental Pay will increase from £156.66 a week to £172.48 or 90% of the employees average weekly earnings, which ever is lower.

The weekly Statutory Parental Bereavement Pay will increase from £156.66 to £172.48 or 90% of the employees average weekly earnings, whichever is lower.

Statutory Sick Pay

The rate of Statutory Sick Pay will increase from £99.35 to £109.40 per week. However, please note that the rate that must be paid to the employee will depend on the number of ‘qualifying days’ they work each week.

The rates which will apply from 1 April 2023 are as follows:

Rate from April ‘23       Annual increase (£)          Annual increase (%)

National Living Wage      £10.42                               0.92                                         9.7

21-22 Year Old Rate        £10.18                                1.00                                         10.9

18-20 Year Old Rate        £7.49                                  0.66                                         9.7

16-17 Year Old Rate        £5.28                                  0.47                                         9.7

Apprentice Rate               £5.28                                  0.47                                        9.7

Accommodation Offset    £9.10                                  0.40                                        4.6

Source: Rates and thresholds for employers 2023 to 2024 – GOV.UK (www.gov.uk)

Employers should also take note of the changes to the National Minimum and Living Wage, which will increase from April 2023. While these are important changes, we remain committed to helping businesses understand and navigate the complex world of HR legislation. If you have any concerns, please do not hesitate to get in touch with one of our advisors.