Statutory redundancy pay to increase on 1 October 2009

Following the announcement in this year's Budget, the maximum amount of a week's pay used to calculate statutory redundancy pay will increase from £350 to £380 with effect from 1 October 2009. The Government has stated that this rate will remain in effect until February 2011.

The £30 increase is intended to help the growing numbers of people being made redundant due to the recession.

It is proposed that the increase will also apply to other statutory payments that use the weekly limit, including the basic award for unfair dismissal. The maximum possible basic award will therefore increase from £10,500 to £11,400.