The Employment Rights (Increase of Limits) Order 2025 SI 2025/348 came into effect on 13 March 2025 and will increase the compensation limits and minimum awards that apply to certain awards that employment tribunals can make and other sums payable under employment legislation with effect from 6 April 2025.
The changes are as follows:
- the limit on the compensatory award for unfair dismissal, will increase from £115,115 to £118,223
- the limit on a week’s pay for the purpose of calculating, among other things, statutory redundancy payments and the basic award for unfair dismissal, which will increase from £700 to £719
- the limit on the compensatory award for failure to allocate and pay tips fairly, will increase from £5,000 to £5,135
- guarantee pay, will increase from £38 to £39 per day; and
- the minimum basic award in cases where a dismissal is unfair by virtue of certain health and safety, working time, employee representative, trade union, or occupational pension trustee reasons will increase from £8,533 to £8,763.
These new rates take effect where the ‘appropriate date’ for the cause of action (such as the effective date of termination in an unfair dismissal claim) falls on or after 6 April 2025.
The Social Security Benefits Up-rating Order 2025 SI 2025/295, which came into effect on 12 March 2025, will increase the rate of payment for a range of statutory leave entitlements.
Among other things, with effect from 6 April 2025, statutory maternity pay (after the first six weeks), statutory adoption pay (after the first six weeks), statutory paternity pay, statutory shared parental pay and statutory parental bereavement pay will be £187.18 per week (increased from £184.03) or 90% of the employee’s average weekly earnings, whichever is lower.
The same increase applies to maternity allowance from 7 April 2025.
Statutory sick pay will rise from £116.75 to £118.75 per week from 6 April 2025.
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