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Increases in employment payments coming in April: what should employers do now?
March 5, 2024
Why are changes being made and when will they take effect?
The Government adjusts the statutory payments to which employees are entitled in April this year. However, as the increases take account of inflation, they are much bigger in 2024 than in previous years. The changes this year reflect the increase in the Retail Prices Index of 8.9% from September 2022 to September 2023. These figures are subject to final approval, but are due to take effect from 6 April 2024.
How will these changes affect employers?
From 6 April, the cap on a week’s pay when calculating an employee’s statutory redundancy pay will increase from £643 to £700. Given that one of the most common reasons for making redundancies is as part of a cost-cutting exercise, this increase of almost 9% will certainly give employers something to think about. Therefore, employers need to plan carefully if they are considering making redundancies in the next few months.
Also from the 6 April, the maximum compensatory award for unfair dismissal will rise from £105,707 to £115,115 (although this is capped at the employee’s annual salary if lower). As such, following a proper process and dismissing fairly for redundancy has never been so important.
Other changes will also include:
Other linked changes include increases to statutory sick pay, maternity pay, and increases in the National Living Wage and other types of minimum wage, which are also due to take effect in April.
What should employers do now?
If you require assistance on any of the above, contact Bríd Price on 02920 829 113 or bprice@darwingray.com for a free initial chat to see how we can help you.
To speak to one of our experts today, please contact us on 02920 829 100 or by using our Contact Us form for a free initial chat to see how we can help.
