The Government has now announced this year’s annual increase to Employment Tribunal compensation limits and other statutory payments, including statutory redundancy pay. The increased rates will come into force on 6 April 2025, and will apply to any relevant events occurring on or after that date.
The changes will be brought about by The Employment Rights (Increase of Limits) Order 2025.
Some of the key increases are as follows:
| New Rate from 6 April 2025 | Previous Rate from 6 April 2024 | |
Cap on a Statutory Week’s Pay (used for calculating various awards, including statutory redundancy pay and unfair dismissal basic awards) |
£719 |
£700 |
Cap on Statutory Redundancy Pay
|
£21,570 |
£21,000 |
Maximum Basic Award for Unfair Dismissal
|
£21,570 |
£21,000 |
Maximum Compensatory Award for Unfair Dismissal
|
£118,223 (or a year’s gross pay, whichever is lower) |
£115,115 (or a year’s gross pay, whichever is lower) |
Additional Award for Unfair Dismissal (where an employer does not comply with a re-instatement or re-engagement order) |
£18,694 to £37,388 |
£18,200 to £36,400 |
Statutory Guarantee Pay |
£39 per day (subject to a maximum of five days or £195 in any three months) |
£38 per day (subject to a maximum of five days or £190 in any three months) |
Graham Irons, comments: Employers should be aware of the increased rates from April 2025, particularly where any redundancies or dismissals are in the pipeline. April 2025 will also bring increases to the National Minimum Wage rates, as well as to statutory sick pay, maternity pay, paternity pay, adoption pay, shared parental pay, statutory parental bereavement pay etc. and the introduction of statutory neonatal care pay. We will shortly be producing Howes Percival’s popular ‘facts and figures’ document containing all of the up-to-date rates, so make sure to keep your eyes peeled!
If you need any further information or assistance on the above, please contact a member of the team here.
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