This year the increases are significant, no doubt due to the current high rate of inflation.
The largest increase we believe has been made to the limit on a week’s pay.
This is relevant to calculations for employees relating to redundancy payments and the basic award in unfair dismissal cases.
The current rate is £571 and will increase to £643 from 6 April 2023.
This is an increase of over 12.5% compared to last years’ increase which was less than 5%.
The maximum compensatory award will also increase to £105,707 from £93,878, the first time it has reached six figures. This is roughly three times the average UK salary of £33,280 according to the ONS.
Again, this is an increase of over 12.5%.
These changes will benefit higher earners.