Compensation Rates Increased


Compensation Rates Increased. The Government have now announced that it will increase the maximum amount of a “week’s pay” from £544 to £571 from 6 April 2022.


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 £16,320 to £17,130.

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 £31 per day.


For further guidance on all other statutory rate changes from April 2022, please visit

For further general HR guidance and information, and HR templates, 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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