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Changes to statutory pay and Employment Tribunal compensation limits

Written by Danae Shell | July 24, 2025 2:44:59 PM Z

From the beginning of April, we’ll see a welcome increase to several UK statutory pay rates, and changes to compensation rates awarded at Employment Tribunals.

National Living Wage and National Minimum Wage

If you are earning the National Living Wage or National Minimum Wage, you will see an increase in your earnings from 1 April 2024 . Here are the updated rates:

  • National Living Wage (ages 21 and over): £11.44 per hour
  • National Minimum Wage (ages 18-20): £8.60 per hour
  • National Minimum Wage (ages 16-17): £6.40 per hour
  • Apprentice Rate: £6.40 per hour

Statutory Sick Pay

Starting 6 April 2024, UK Statutory Sick Pay (SSP) will  increase from £109.40 to £116.75 per week. This means you'll receive more financial support if you need time off work due to illness, making it easier to manage your expenses during periods of sickness.

Find out if you’re eligible to receive Statutory Sick Pay.

 

Statutory Maternity, Paternity, Adoption Shared Parental and Parental Bereavement Pay

Statutory Maternity Pay (SMP) and Statutory Adoption Pay (SAP) will increase from £172.48 to £184.03 per week. 

The statutory rate for those eligible for paternity, shared parental, and parental bereavement pay will also increase to £184.03 per week.

These new rates apply from 7 April 2024.

 

Statutory Redundancy Pay (SRP) and awards for unfair dismissal

No one wants to face a job loss, but it’s good to know that if it does happen there is a little extra financial cushioning. The maximum payment for both redundancy and the awards for unfair dismissal will increase from 6 April 2024:

  • Maximum statutory redundancy payment an employee can receive will increase to £21,000.
    • When calculating an employee’s statutory redundancy entitlement, the maximum gross weekly pay that would be considered will increase from £643 to £700.
  • Maximum basic award for an unfair dismissal claim will also increase to £21,000.
  • The statutory cap on compensatory awards for unfair dismissal claims will increase from £105,707 to £115,115.

Compensation for Injury to Feelings in discrimination claims

The values of the three “Vento” bands used to assess an employee’s injury to feelings as a result of discrimination in the workplace will increase from 6 April 2024.

 

Vento Band Claims issued
6 April 2023 - 5 April 2024

Claims issued
6 April 2024 - 5 April 2025
Lower band
  • Less serious cases
  • e.g. “an isolated or one-off occurrence”
 £1,100 – £11,200 £1,200 – £11,700
Middle band
  • Serious cases
  • e.g. “does not merit an award in the highest band”
 £11,200 – £33,700 £11,700 – £35,200
Upper band
  • Most serious cases
  • e.g. “a lengthy campaign of discriminatory harassment”
 £33,700 – £56,200 £35,200 – £58,700

 

Employment Tribunal compensation based on weekly pay

From 6 April 2024, the maximum amount of weekly pay that will be considered by a Tribunal in awarding compensation will increase. This means you may be awarded higher compensation for any award that is based on your weekly pay, if you filed your claim after 6 April 2024.

The limit on compensation for two weeks’ pay will rise from £1,286 to £1,400 . Similarly, the limit on compensation calculated based on four weeks’ pay will increase from £2,572 to £2,800.

Find out more about the changes coming into force under The Employment Rights (Increase of Limits) Order 2024  

 

 
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