Increases to Statutory Rates for 2024-2025
The following is a summary of the main changes to statutory rates which apply from 6 April 2024.
Minimum Wage
The rates from April 2024 are as follows:
- Adults (which means people aged 21 and over) receive the full rate of £11.44 per hour.
- A ‘development rate’ of £8.60 an hour is paid to workers aged 18 to 20 inclusive.
- Young people (those older than school leaving age (after the end of summer term of the school year in which they turn 16) and younger than 18) receive £6.40 an hour.
- Apprentices under the age of 19 receive £6.40 an hour.
- Apprentices who are 19 or over and in the first 12 months of their apprenticeship receive £6.40 an hour.
There are complicated regulations regarding piece work, tips, commission, bonuses etc. If you are in any doubt, please seek advice from your Employment Law Adviser.
Compensation in Employment Tribunals
The maximum compensatory award payable for ‘standard’ unfair dismissal cases is the lower of:
- £115,115 and;
- 52 times the claimant’s weekly pay.
There is no upper limit on tribunal awards for discrimination cases, and where an employee is protected by the Public Interest Disclosure Act.
The maximum amount of a week’s pay for the purpose of calculating a basic award of compensation for unfair dismissal, an additional award of compensation for unfair dismissal, and a statutory redundancy payment is £700.
The minimum basic award where dismissal is unfair by virtue of s.100(1)(a) or (b), 101A(d), 102(1) or 103 of the Employment Rights Act is now £8,533.
The maximum amount that may be awarded by a tribunal in respect of a contract claim is £25,000.
Statutory Guarantee Pay
The statutory guarantee payment to an employee in respect of a workless day in the case of lay off is £38.00. A maximum of five payments in any thirteen-week period is applicable.
Statutory Sick Pay (SSP)
Qualified employees can get up to £116.75 a week SSP. The weekly rate of SSP for the tax year is computed at a daily rate. The maximum entitlement is 28 weeks in each period of sickness.
The lower earnings limit is still £123 per week.
Statutory Maternity Pay (SMP)
SMP is payable for a maximum of 39 weeks. The rates of SMP are as follows:
- first six weeks at 90% of average weekly earnings (AWE); and
- up to a further 33 weeks at the lower of:
- 90% of AWE
- £184.03 per week
Statutory Paternity Pay (SPP)
SPP is payable for a maximum of two weeks. It can be taken as a block of either one week or a complete fortnight or two single non-consecutive weeks at the following rates:
- the lower of:
- 90% of AWE
- £184.03 per week
Please note that there have been recent changes to paternity leave, which are detailed in the previous news bulletin.
Statutory Adoption Pay (SAP)
SAP is payable for a maximum of 39 weeks. The rates of SAP are as follows:
- first six weeks at 90% of average weekly earnings (AWE); and
- up to a further 33 weeks at the lower of:
- 90% of AWE
- £184.03 per week
Statutory Shared Parental Pay (ShPP)
ShPP is payable for a maximum of 37 weeks, at the rate of £184.03
Redundancy Pay
For 2024-2025, the redundancy weekly cap for redundancy pay calculation purposes is £700 per week and and the maximum statutory redundancy pay an employee can get is £21,000.
If you have any questions, please contact us by emailing enquiries@perspectivehr.co.uk or by phoning 01392 247436.
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