• Home
  • News
  • Annual increase to employment compensation limits

22 Mar 2024

Annual increase to employment compensation limits

Linkedin

As the seasons change, so do certain employment compensation limits as well as rates of pay. We have set out in this e-alert the key increases.

Tribunal compensation 

From 6 April 2024:

  • the maximum compensatory award for unfair dismissal will be the lower of 12 months' salary or £115,115 (up from £105,707).
  • the limit on a week’s pay for the purposes of calculating statutory redundancy payments and basic awards for unfair dismissal will be £700 (up from £643).
  • consequently, the maximum basic award for unfair dismissal and the maximum amount for statutory redundancy pay, both of which are calculated on a formula based on the employee's age, length of service and weekly pay, will be £21,000 (up from £19,290).

The new rates will apply where an individual's effective date of termination of employment falls on or after 6 April 2024.

National Minimum Wage 

From 1 April 2024:

  • the National Living Wage for workers aged 21 and over will increase to £11.44. Currently, the National Living Wage is payable only to those aged 23 and over (and is at a rate of £10.42). The threshold is being lowered to include all those aged 21 and over.
  • the National Minimum Wage for those aged 20 to 18 (inclusive) will increase from £7.49 to £8.60.
  • the National Minimum Wage for those under the age of 18 and the Apprentice Rate will increase from £5.28 to £6.40.

Family leave 

From 7 April 2024*, the weekly rate for statutory paternity pay, statutory shared parental pay, statutory parental bereavement pay as well as statutory maternity pay and statutory adoption pay, after the first 6 weeks of leave, will be £184.03 or 90% of the employee’s average weekly earnings, whichever is lower.

*This date is taken from the gov.uk website for rates and thresholds for employers for 2024 to 2025.

Linkedin

KEY CONTACT

Paul Reeves

Paul Reeves
Head of employment

T:  +44 20 7809 2916 M:  +44 7919 694 135 Email Paul | Vcard Office:  London

Leanne Raven

Leanne Raven
Senior knowledge lawyer

T:  +44 20 7809 2560 M:  +44 7827 353 108 Email Leanne | Vcard Office:  London