Statutory rates increases – April 2025

The new statutory rates applying to certain employment tribunals awards and other amounts payable under employment legislation which will apply from April 2025 have been published and set out below:

• The cap on a week’s pay, used to calculate various statutory payments including statutory redundancy pay, will increase from £700 to £719
• The cap on the compensatory award for unfair dismissal will increase from £115,115 to £118,223
• Statutory guarantee pay will increase from £38 to £39 per day
• Minimum basic award for certain unfair dismissals (such as health and safety dismissals) increases from £8,533 to £8,763
• The limit on the compensatory award for failure to have a written tips policy, or for failure to allocate and pay tips fairly, increases from £5,000 to £5,135.

The changes will take effect from 6th April 2025  They will apply to dismissals where the date of termination is on or after 6 April 2025.

These rates are reviewed, and usually increased, in April each year.  The increases are based on the retail prices index and are designed to ensure that the caps on awards keep up with inflation.

Maternity and other family-friendly rates increases

Also changing in April 2025 are the rates for statutory maternity, paternity, adoption and shared parental leave.  These increase from £184.03 to £187.18 a week from 6 April 2025.  The rates were previously announced by the government, but we thought it useful to mention here as a reminder.