Annual increases to employment compensation limits and statutory rates of pay

The compensation limits for tribunal unfair dismissals awards and the prescribed amount of statutory payments will increase from April 2020.

Compensation limits

For unfair dismissal claims where the effective date of termination is on or after 6 April 2020:

• The maximum limit on a weeks’ pay (used to calculate the basic award) will be £538 (up from £525)
• The maximum compensatory award for unfair dismissal will be £88,519 (up from £86,444), or 12 months’ pay if this is lower.

The weekly pay cap is also used for statutory redundancy payments, so will affect redundancy calculations where employment terminates on or after 6 April 2020. 

Rates for statutory maternity pay, sick pay and other statutory payments

Increases to statutory sick pay, maternity, paternity, adoption and shared parental pay have also been published. Subject to parliamentary approval:

• From 6 April 2020, statutory sick pay rate will increase to £95.85 per week (from £94.25); and
• From 5 April 2020, statutory maternity pay, paternity pay, adoption pay and shared parental pay will increase to £151.20 per week (up from £148.68).