Compensation rates increase from 6 April 2018

23 March 2018

In the usual way, the statutory compensation rates will increase in April as follows:

  • The statutory rate of weekly pay will increase from £489 to £508
  • This means that the maximum statutory redundancy payment or basic award for unfair dismissal that an employee may receive increases from £14,670 to £15,240.
  • The compensatory award for unfair dismissal will increase from £80,541 to £83,682 (or 52 weeks’ gross pay, whichever is lower).

These new rates will apply to any claim where the appropriate date falls on or after 6 April 2018 – for example, in unfair dismissal claims, the appropriate date is the effective date of termination.

By Michelle Tudor

For further advice on the above topics, please call us on 01483 543210 or alternatively email

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