Organisations and tribunals in the UK are guided by annually-set rates. A statutory rate is a government-set amount that is intended to establish the minimum, and maximum, amount payable under certain circumstances. A compensation limit is a ‘band’ which establishes the ‘value’ of certain awards.
Essential points
- Statutory rates include the likes of sick pay, ‘lay off pay’, maternity, paternity or adoption pay.
- Tribunal compensation limits cover scenarios such as ‘redundancy payouts’ or awards for unfair dismissal.
- The statutory rates and compensation limits addressed below apply to England, Scotland, Wales and Northern Ireland where indicated.
- This page includes the rates for April 2023- April 2024, as well as the confirmed rates for April 2024-April 2025.
- The people profession should ensure that they are aware of the rates that apply to their businesses.
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Disclaimer
Please note: While every care has been taken in compiling this content, CIPD cannot be held responsible for any errors or omissions. These notes are not intended to be a substitute for specific legal advice.
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