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Statutory Rates and JIB Pay Rate

ECA has completed a two year agreement for JIB wages and conditions for 2022/23. 

Details of the changes under the JIB agreement effective from Monday 3rd January 2022 are available to view here.

The main changes introduced in the two year settlement are;

From Monday 3rd January 2022

  • 2.5% increase in wages

From Monday 2nd January 2023

  • 2.5% increase in wages
  • Distances for Mileage Allowance and Mileage Rate to be measured via the fastest rather than shortest route
  • £15,000 increase to Accidental Death Benefit while at work from £55,000 to £70,000
  • £15,000 increase to Accidental Death Benefit while at work for JIB apprentices –  from £10,000 to £25,000
  • £10 increase to weekly sick pay for all grades during weeks 3 to 24 with a corresponding £5 per week increase for weeks 25 to 52

For further information and for all the Statutory Pay updates - click here 

Lodging Allowances 2022

HMRC have confirmed the Lodging Allowance rates, as tax free payments, from 3 January 2022 will increase by 0.9% to the following:

  • Lodging Allowance will increase to £42.66 per night.
  • Annual Holiday Retention payments to increase to a maximum of £14.04 per night (£98.28 per week); and
  • Weekend Retention payment to increase to £42.66 per night

HMRC have also confirmed the Mileage Allowance payable under the National Working Rules can continue to be paid tax free.

Current Mileage Allowance remains at 22p per mile over 15 Miles each way. Current Mileage Rate remains at 12p per mile over 15 Miles each way.

Full details of JIB terms and conditions including the current wages are set out in the JIB Handbook here.

The Real Living wage is a voluntary rate calculated by the Living Wage Foundation and remains the only rate that’s based on what workers and their families need to get by: the weekly shop, energy bills, a school uniform for growing kids; even a trip to the dentist.

The rates are calculated every year based on the best available evidence on living standards in the UK and London (where there is a different rate to reflect the higher cost of living). It applies to all workers over 18 – in recognition that young people face the same living cost as everyone else.

Real Living Wage 2021

From 9th November 2021

Real Living Wage UK



London Rate



You can find out more about the real living Wage here.

ECA’s How to become a Real Living Wage Webinar provides insight into the accreditation process with a panel of cross industry experts.  Please click on the link to watch the webinar in full.

The National Living Wage for workers aged 23 and over is currently £8.91 per hour. This rate will go up to £9.50 per hour on 1 April 2022.

More information can be found here here.

The changes to the National Living and National Minimum wage rates are:

Age Range

Current hourly rate

New Hourly Rates effective from 1 April 2022

Workers aged 23 and over (national living wage)



Workers aged 21 to 22 inclusive



Workers aged 18 to 20



Workers aged under 18






*Apprentices are entitled to the apprentice rate if they’re either:

  • aged under 19
  • aged 19 or over and in the first year of their apprenticeship

Example: An apprentice aged 21 in the first year of their apprenticeship is entitled to a minimum hourly rate of £4.30.

Apprentices are entitled to the minimum wage for their age if they both:

  • are aged 19 or over
  • have completed the first year of their apprenticeship

Example: An apprentice aged 21 who has completed the first year of their apprenticeship is entitled to a minimum hourly rate of £8.36.

NMW rates normally change on 1 April every year.

More information can be found here here

Weekly pay

The value of a number of employment claims, including statutory redundancy pay, are calculated by reference to an employee’s weekly pay. This weekly pay is itself subject to a cap of a prescribed amount.

From 6 April 2021, the prescribed cap on weekly pay will increase to £544. Consequently, statutory redundancy pay will increase, with the maximum payment increasing to £16,320.

Compensation for unfair dismissal

Compensation for unfair dismissal claims is split into a “basic” award and a “compensatory” award. The basic award is calculated in the same way as statutory redundancy pay and will, therefore, increase as described above.

The compensatory award is calculated by reference to the claimant’s loss of earnings, subject to a statutory cap. The cap on the compensatory award for ordinary unfair dismissal claims will increase as of 6 April 2021 to £89,493 (or 52 weeks’ gross actual pay, if lower). These new figures will apply where the effective date of termination falls on or after 6 April 2021.

The weekly rates of statutory maternity, adoption, paternity, shared parental and parental bereavement pay increase to £156.66, up from £151.97. The increases takes effect on the first Sunday in April, which in 2022 is 3 April.

Statutory Sick Pay increases from £96.35 per week to £99.35 from 6 April 2022.

Employees are eligible for SSP if they have been ill for at least 4 days in a row (including non-working days).

The JIB has more generous Sick Pay Benefits. Details of the JIB scheme are available here.

ECA’s Employee relations department has updated their detailed guidance note which provides information on the relevant legislation, advice on the correct approach to the calculation of holiday pay and analysis of the impact of the most recent case law.

Read the ECA annual leave guidance note here > 

Learn more about Holiday Pay here >


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ECA has completed a two year agreement for JIB wages and conditions for 2022/23. This documents details the changes.