The 'final offer' is 1.75% and as the tax year draws to a close, employers might be considering making payments to employees on account.
One reason payments might seem attractive this year is that from 5 April 2022, the Health and Social Care Levy (the Levy) will be collected through National Insurance Contributions (NICs). NICs are calculated based on the date of the payment to the employee and not the period to which the payment relates which means that the Levy will be payable on any back-dated payments for 2021/22 if made after 5 April 2022.
Employers are able to make payments 'on account' whilst pay awards are pending provided that their decision-making is robust. We recommend that you take the following steps if considering this approach: