Increase in a week’s pay to £380 from 1st October

United Kingdom

In the April Budget the Government announced a one-off increase in statutory redundancy pay by increasing the weekly pay limit to £380 from £350. This becomes effective from 1st October. However, contrary to some expectations, this increase is not confined to statutory redundancy payments but covers a week’s pay for all calculations where a week’s pay is limited. Therefore it includes the basic award for unfair dismissal.

The new rate applies where the event giving rise to the entitlement to compensation or other payments occurs on or after 1st October 2009.

The regular annual increase in February has been suspended for 2010 so the next increase in a week’s pay is now due in February 2011.

A copy of The Work and Families (Increase of Maximum Amount) Order 2009 (SI 2009/1903) is available here.