Now that we are well and truly into 2014, the nights are starting to get lighter and the birds are beginning to sing, it is that time of the year when the employment statutory rates and limits are increased.
Some of these changes would normally be seen in February each year. For the first time this year all these changes are to come into effect on the 6 April 2014 and will change on this date moving forward each year. The new changes will allow for the increases to coincide with the beginning of each financial year. This should make life easier for employers.
Below are the key statutory rates and limits to change:
Statutory Payments will increase in respect of maternity pay, paternity pay and sick pay. The new rates are:
Limit on Tribunal Awards will increase in respect of the following:
- The maximum amount of a week’s pay, used to calculate statutory redundancy payments or various awards (including the basic award or additional award of compensation for unfair dismissal) will increase to a maximum of £464 from £450.
- The maximum compensatory award for unfair dismissal will rise from £74,200 to £76,574.