2022/23 Thresholds FAQ's

HMRC Rates and Thresholds for the 2022/23 Tax Year


The National Minimum Wage

The National Minimum Wage is the minimum pay per hour almost all workers are entitled to by law. 

These rates apply from 1 April 2022.



Statutory Maternity, Paternity, Adoption, Shared Parental and Parental Bereavement Pay


These rates apply from 3 April 2022.


Statutory Sick Pay (SSP)

The same weekly Statutory Sick Pay rate applies to all employees. However, the amount you must actually pay an employee for each day they’re off work due to illness (the daily rate) depends on the number of ‘qualifying days’ they work each week.

Unrounded daily rates

Number of qualifying 

days in week

1 day to pay2 days to pay3 days to pay4 days to pay5 days to pay6 days to pay7 days to pay


Student loan and postgraduate loan recovery

If your employees’ earnings are above the earnings threshold, record their student loan and postgraduate loan deductions in your payroll software. It will automatically calculate and deduct repayments from their pay.

Rate or threshold2022 to 2023 rate
Employee earnings threshold for student loan plan 1£20,195 per year
£1,682.91 per month
£388.36 per week
Employee earnings threshold for student loan plan 2£27,295 per year
£2,274.58 per month
£524.90 per week
Employee earnings threshold for student loan plan 4£25,375 per year
£2,114.58 per month
£487.98 per week
Student loan deductions9%
Employee earnings threshold for postgraduate loan£21,000 per year
£1,750.00 per month
£403.84 per week
Postgraduate loan deductions6%


Employment Allowance

Employment Allowance allows eligible employers to reduce their annual National Insurance liability by up to the annual allowance amount.

2022 to 2023 rate for Employment Allowance:  £4,000.0

To be eligible, employers must have at least 1 employee, or 2 directors, on the payroll, and the directors must not have another company that is claiming the Employment Allowance already. This means that sole directors can’t claim the allowance, which is why the optimum salary is a bit different for them.