From April 2025, the rates for statutory payments and employment tribunal awards are changing. In this article, we set out the main changes coming into effect.
Statutory Redundancy Payment
From 6th April 2025, the statutory upper limit on a week’s pay used for calculating an employee’s redundancy entitlement will increase to £719 (from £700).
Statutory redundancy pay is calculated based on the employee’s weekly pay or the statutory maximum of £719, whichever is the lower, multiplied by:
- For each year employed under the age of 22: 0.5
- For each complete year employed aged between 22 and 40: 1
- For each complete year employed aged 41 or over: 1.5
The new statutory upper limit on a week’s pay means the maximum statutory redundancy payment will therefore increase to £21,570 (from £21,000).
Unfair Dismissal Claims
- From 6th April 2025, the maximum basic award for an unfair dismissal claim will increase to £21,570 (from £21,000); and
- The maximum compensatory award for an unfair dismissal claim will increase to £118,223 (from £115,115) or 52 weeks’ pay, whichever is the lower amount.
Statutory Guarantee Pay
From 6th April 2025, the Statutory Guarantee Pay will increase to £39 per day (from £38 per day).
Compensation for Injury to Feelings
Where a claim for discrimination is presented to an employment tribunal on or after 6th April 2025, the following compensation for injury to feelings will apply:
- Lower Band (less serious cases, for example, an isolated or one-off occurrence) – £1,200 to £12,100 (increasing from £1,200 to £11,700)
- Middle Band (serious cases but the circumstances do not fall into the top band) – £12,100 to £36,400 (increasing from £11,700 to £35,200)
- Top Band (the most serious cases, for example, where there has been a lengthy discriminatory campaign) – £36,400 to £60,700 (increasing from £35,200 to £58,700). Exceptional cases may exceed £60,700.
Statutory Family-Related Pay
From 6th April 2025, the following rates will apply:
Statutory Maternity Pay:
- 90% of average weekly earnings for the first 6 weeks; and
- £187.18 per week or 90% of average weekly earnings (if lower) for up to 33 further weeks.
Statutory Adoption Pay:
- 90% of average weekly earnings the first 6 weeks; and
- £187.18 per week or 90% of average weekly earnings (if lower) for up to 33 further weeks.
Statutory Paternity Pay:
- £187.18 per week or 90% of average weekly earnings (if lower) for up to 2 weeks.
Shared Parental Pay:
- £187.18 per week or 90% of average weekly earnings (if lower) for up to 39 weeks.
Statutory Parental Bereavement Pay:
- £187.18 per week or 90% of average weekly earnings (if lower) for up to 2 weeks.
Statutory Neonatal Pay:
- £187.18 per week or 90% of average weekly earnings (if lower).
Statutory Sick Pay (SSP)
From 6th April 2025, SSP will increase to £118.75 per week (from £116.75), for a maximum of 28 weeks.
National Minimum Wage
With effect from 1st April 2025, the National Minimum Wage increased, which varies, depending on the age of the employee.
If you require further information in relation to the above changes or any other employment law issues, please contact our Surrey solicitors employment team on 0800 011 9813. Our employment solicitors in Surrey have expert knowledge to help you navigate these changes.
