Increase to Statutory Rates

Fiona Gorry
Head of Litigation
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The Government has announced the normal inflationary increases to various statutory rates of pay in the Employment Rights (Increase of Limits) Order 2025. If these changes are approved by Parliament, they will come into force on 6 April 2025.

The most notable increases that you should be aware of are as follows:

• Redundancy pay – The cap on a week’s pay for a statutory redundancy pay calculation will increase from £700 to £719.
• Compensatory award for unfair dismissal– The limit on this award for loss of earnings will increase from £115,115 to £118,223. For people who earn less than £118,223, the limit will continue to be 52 weeks’ gross pay.
• Compensatory award for failure to allocate and pay tips fairly – The limit will increase from £5,000 to £5,135.
• Statutory guarantee payment – The statutory guarantee payment will increase from £38 a day to £39 a day. This is payable for the first five days of any period of lay-off.

The full list of changes can be found here.

If you would like to discuss the implications of the above increases, or if we can assist with any other employment law matter, please do not hesitate to contact a member of the team on 0141 331 5150.

Topics: Statutory Payments