Redundancy Pay – Week’s Pay Limit Increased
30 January 2009
From 1st February 2009 the maximum weekly pay to be used in calculating Statutory Redundancy Pay will increase from £330.00 to £350.00. This will also apply to redundancy processes that have already commenced, and have not concluded. Therefore it is important to take this into account if you are currently going through a redundancy consultation process.
As a point of interest it is worth noting that the TUC welcomed the increase, but that they believe that this should be increased to £500.00. In response to this the CBI have stated that they believe an increase to £500.00 would put even more jobs at risk as this would put added financial pressure on distressed businesses during the current economic climate. The TUC have also called for the Redundancy Pay Tax Cap to be increased from £30,000 to £50,000.