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|Minimum wage – 1st April 2022|
| From 1st April 2022 the National Minimum wage will increase, these are as follows: National Living Wage (23+) to increase from £8.91 to £9.50|
National Minimum Wage (21-22) to increase from £8.36 to £9.18
National Minimum Wage (18-20) to increase from £6.56 to £6.83
National Minimum Wage (under 18) to increase from £4.62 to £4.81
Apprenticeship Wage to increase from £4.30 to £4.81 How to calculate employees’ annual salary for National Living Wage or National Minimum wage:
Example 1: Employee A is currently on £18,000.00 per annum they work 39 hours per week and is 23 years old. In April they will need to be paid £19,266 per annum as a minimum.
How to calculate this: £9.50 (min wage for the age) X 39 (hours per week) X 52 (weeks per year) = £19,266 per annum
Example 2: Employee B is 50 years old and works 45 hours per week they are entitled to receive £9.50 per hour therefore their annual salary needs to be £22,230.00.
How to calculate this: £9.50 (min wage for the age) X 45 (hours per week) X 52 (weeks per year) = £22,230 Example 3: Employee B is 21 and works 36.5 hours per week, they are entitled to £9.18 per hour, therefore their annual salary needs to be £17,423.64.
How to calculate this: £9.18 (min wage for the age) X 36.5 (hours per week) X 52 (weeks per year) = £17,423.64.
Example 4: An apprentice in their first year is paid £4.81 per hour and works 30 hours per week. Their annual salary needs to be £7,503.60.
How to calculate this: £4.81 (min wage for the age) X 30 (hours per week) X 52 (weeks per year) = £7,503.60
|Statutory sick pay increase – 6th April 2022|
Statutory sick pay will increase from £96.35 per week to £99.35 per week.
|Statutory family related leave (SMP) (SAP) (SPBP) (SShPP) increase – 3rd April 2022|
These types of leave will increase from £151.97 to £156.66 per week.
|National Insurance increase – 6th April 2022|
|National Insurance contributions will increase by 1.25%, the Government have confirmed the increase will go towards NHS and the Health and Social Care. Should you require further information please speak with Finance and/or the Company’s payroll providers.|
|Lower earnings limit – April 2022|
The lower earnings limit will increase from £120 per week to £123 per week for the first time in two years.
|Additional Bank Holiday for 2022|
| You may have seen that this year the Country is having an additional bank holiday on Friday 3rd June 2022 to celebrate the Queens 70 years of Monarchy, this is the Platinum Jubilee Bank Holiday. This means this year in total there will be 9 bank holidays, but do you have to give it to your employees?|
Not necessarily, as this is dependent on the wording stated within the contract of employment, there is no legal entitlement to have the day off for a Bank Holiday. However, it would be best practice to give your employees the additional day as this may cause them to be disgruntled and affect the morale within the team. If the wording specifically states only 8 Bank Holidays you do not need to give them the additional entitlement. However, should the contract just state Bank Holidays then you would be required to give them this additional day.
Alternatively, providing your contract of employment does not require you to give the additional day you could make the decision to close for the day and require employees to take this as a directed day out of their normal entitlement. This is providing you provide the correct notice, such as twice as much notice than the holiday being taken.
You should really consider if having the one additional day off is going to have a negative impact on the business. You should inform your employees in advance of the Company’s decision, so they understand their position.
Again, the morale amongst employees may be affected and may cause them to be disgruntled, so you need to way up the pros and cons of having this additional day off as annual leave.