Compensation Rates Increased 2023. The Government have now announced that it will increase the maximum amount of a “week’s pay” from £571 to £643 from 6 April 2023.


A “week’s pay” is used to calculate statutory redundancy payments, payments to employees in the event of insolvency and various awards including the unfair dismissal basic and additional awards.  The above-mentioned increase means the maximum basic award for unfair dismissal and statutory redundancy pay (30 weeks’ pay, subject to the limit on a weeks’ pay) will increase from £17,130 to £19,290.

Further Information

Other key increases are:

Finally, the limit on the daily amount of statutory guarantee pay, which is used to pay employees for the first 5 workless days if you lay them off work will increase to £35 per day.

 Actions – Compensation Rates Increased 2023

The new limits will apply to dismissals occurring on or after 6th April 2023. Therefore, if you have any redundancies on the horizon you may want to ensure where possible these dismissals (including consultation and notice) are completed before the 6th April 2023, after which it may become more expensive.

For further guidance on all other statutory rate changes from April 2023, please visit

Fiona Haworth

You can contact Fiona on [email protected].

If you feel that you need guidance or advice on this matter, please call Practical HR on 01702 216573 or email Fiona on the above.


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If you need advice or guidance on the subject matter outlined in the above item, or any other employment matter, please get in touch. We’d love to hear from you.