Every year the government reviews all statutory and compensatory payments, and it is on the 1st February that the increases (and occasional decreases!) take effect.
This year is no exception and the week’s pay maximum of £400 has increased to £430. This figure is used for the purpose of calculating redundancy pay.
In addition to this, the maximum compensatory award at tribunal has increased from £68,400 to £72,300.
Finally the limit on the daily amount of statutory guarantee pay increased to £23.50.
The next date in the calendar year for statutory increases is April, when the Department for Work and Pensions increases most payments connected with family friendly issues. The following increases are due on the dates stated:
- Statutory Maternity, Paternity and Adoption Pay will all rise to £135.45 on or after Sunday 8th April 2012
- Statutory Sick Pay will increase to £85.85 with effect from the start of the new tax year which is the 6th April 2012
In order to qualify for statutory payments, employees must earn at least the lower earnings limit, and this is also increased to a threshold of £107.00 per week, and again this is from 6th April 2012.
For further information, please contact your Drury consultant on 01274 626200.