30th September 2009
Following on from the announcement made in the 2009 Budget, from 1 October 2009 the weekly limit used to calculate the statutory redundancy pay will increase from £350 to £380 (resulting in a maximum potential payment of £11,400).
The reasoning behind the Government’s decision is to provide more support for those individuals made redundant in the current economic climate. It is worth noting that the increase in the limit will affect all compensation payments to which the weekly pay limit is relevant.
These figures are updated annually in February, and the introduction of this one-off increase in October 2009 means the usual increase in February 2010 will be suspended.
National Minimum Wage (NMW)
The new NMW rates come into effect on 1 October 2009. There are three hourly rates and they are as follows:
- For workers aged 22 and over, the current rate of £5.73 per hour will increase to £5.80;
- For workers aged 18 to 21, the current rate of £4.77 per hour will increase to £4.83; and
- For workers aged 16 and 17, the current rate of £3.53 will increase to £3.57.