Updated statutory rates

28 March 2025

Although yet to be approved, the Government has laid the Employment Rights (Increase of Limits) Order 2025 ‘the Order’ before Parliament. The Order sets out the new proposed statutory rates to apply in certain awards that the Employment Tribunal can order and other amounts payable under employment legislation.

The changes include;

• The cap on a week’s pay for statutory redundancy pay calculations to increase from £700 to £719.
• The limit on compensatory awards for unfair dismissal to increase from £115,115 to £118,223.
• Statutory guaranteed pay (short-time or lay off) to increase from £38 to £39 per day.

Should the Order be approved, the changes will take effect from 6 April 2025.

If you’re unsure how these proposed changes might affect your business or require assistance in preparing for the new regulations, contact our Employment team today for expert guidance.

This article was written by Gabrielle Scriven.