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The annual update to compensation limits and statutory payments takes effect this April. Key changes include:
Weekly Pay Calculation: The amount of a week’s pay—used for unfair dismissal basic awards and statutory redundancy pay—rises from £700 to £719.
Unfair Dismissal Cap: The maximum compensatory award for unfair dismissal increases from £115,115 to £118,223.
Maternity, Adoption, Paternity and Parental Pay: Increases to £187.18 per week (up from £184.03) or 90% of average weekly earnings, whichever is lower.
Maternity Allowance: Matches the increase from 7 April 2025.
Statutory Sick Pay: Rises from £116.75 to £118.75 per week.
These changes apply to dismissals on or after 6 April 2025. Employers will want to update payroll systems to reflect these changes.
Please get in touch if you have any questions regarding the issues discussed in this article.
E: help@jma-hrlegal.co.uk / T: +44 (0)1252 821792
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