Businesses, courts and tribunals in the UK are guided by annually-set rates.
A statutory rate is a government-set, legal rate which must be adhered to. A statutory rate would typically be paid by the employer, outside of any legal process. Examples of statutory rates listed in this content include Statutory Maternity Pay, Statutory Paternity Pay, Statutory Sick Pay or Statutory Redundancy Pay.
A compensation limit is a set amount (or a lower and upper band of pay) that an employment tribunal can award for certain claims. These claims could, for example, be for the likes of unfair dismissal or failure to follow the Working Time Regulations.
The statutory rates and compensation limits addressed below apply to England, Scotland, Wales and Northern Ireland where indicated.
The people profession should ensure that they are aware of the rates that apply to their businesses.
Affiliate membership offers instant access to CIPD resources without the need for assessments or study, or explore your options to become a professional member of the CIPD to demonstrate your commitment to the world of work.
Already a member? Login here.
Please note: While every care has been taken in compiling this content, CIPD cannot be held responsible for any errors or omissions. These notes are not intended to be a substitute for specific legal advice.
Step into the future of work - gain powerful insights, spark innovation, and lead lasting change.
Keep up to date with what will change under the Employment Rights Bill, the Equality (Race and Disability) Bill and the plan to Make Work Pay
Explore our collection of resources around legal issues relating to sex discrimination in the workplace, including pregnancy and maternity discrimination
Keep up to date with the latest employment law developments and proposed future changes
The UK’s relationship with EU employment law post-Brexit