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Increases in rates and limits

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By Hilary Larter & Ceri Fuller

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Published 03 April 2023

Overview

Annual increases in employment related rates and limits will take effect this month.

THE FACTS

The following annual changes in rates and limits will take effect this month in Great Britain.

RATE/LIMIT

OLD RATE

NEW RATE

DATE OF CHANGE

Limit on a week’s pay

£571

£643

6 April 2023

Maximum statutory redundancy pay

£17,130

£19,290

6 April 2023

Maximum basic award for unfair dismissal

£17,130

£19,290

6 April 2023

Maximum compensatory award for unfair dismissal

£93,878

£105,707

6 April 2023

Statutory sick pay weekly rate

£99.35

£109.40

10 April 2023

Statutory maternity, paternity, shared parental and adoption pay weekly rate

£156.66

£172.48

10 April 2023

National Minimum Wage

 

 

1 April 2023

Ø  Age 23 and over

£9.50

£10.42

Ø  Age 21-22

£9.18

£10.18

Ø  Age 18-20

£6.83

£7.49

Ø  Age 16-17

£4.81

£5.28

Ø  Apprentice rate

£4.81

£5.28

WHAT DOES THIS MEAN FOR EMPLOYERS?

For the first time, the maximum compensatory award in employment tribunal claims has risen to above £100,000.  This is a significant increase, driven by inflation, and should be noted by employers facing unfair dismissal claims this year. 

Employers should factor the increases in rates into workforce planning. 

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