Rate changes from April 2022

From 1 April 2022 the National Minimum Wage rates increased as follows:

• Apprentices under 19 or in their first year: £4.81 (an increase of 51 pence)
• Under 18: £4.81 (an increase of 19 pence)
• 18 – 20: £6.83 (an increase of 27 pence)
• 21 – 22: £9.18 (an increase of 82 pence)
• Age 23 and over (the National Living Wage): £9.50 (an increase of 59 pence)

National Insurance Contributions increased by 1.25% from 6 April 2022 in order to increase funding for the NHS and the social care sector. The government have announced that from April 2023 National Insurance will return to its old rate, however the extra 1.25p in the pound will still be collected by the new Health and Social Care Levy.

The point at which people start to pay National Insurance Contributions will rise on 6 July 2022 from £9.880 to £12,570.  The higher rate threshold will remain at £50,270.

Taking the higher rates and the higher threshold together, those earning less than £35,000 will see a fall in their overall National Insurance Contributions in 2022–23 compared to 2021–22. Those earning more than £35,000 will see an increase in their overall National Insurance Contributions bill.

For further information on the changes to National Insurance contributions, please follow this link to the government website.

The prescribed weekly rates for statutory maternity, adoption, paternity, shared parental and parental bereavement pay increased with effect from 3 April 2022 to £156.66 (up from £151.97).

The weekly rate of statutory sick pay increased on 6 April 2022 to £99.35 (up from £96.35).