Increase to Statutory Rates 2025

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.

• 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 lay-off period.

The full list of changes can be found here

If you would like any further information on this article or would like to discuss your employment law and HR matters, please don’t hesitate to contact at hello@alphr.uk and we will be delighted to help you.