New RPS Limit Announced

The Employment Rights (Increase of Limits) Order 2024 confirms the weekly cap which will be applied by The Redundancy Payments Service from 6 April 2024.

The cap is rising to a nice round £700 a week, which should make calculations easier than the old rate of £643 a week.  This represents a rise of just under 8.9%.  As you will no doubt be aware, this amount is pro-rated where an employee works less than five days a week. 

An employee on the minimum wage from 6 April 2024 (£11.44 an hour for those over 21) will need to work over 61 hours to reach the cap.  An employee working 35 hours a week will see their claim capped if they earn over £20 an hour.

For JIEB students, this new figure of £700 will be the one which will be examined in November.  CPI students will be examined on the current limit of £643 at both exams this year.