New RPS Limit Announced

Posted on Feb 29, 2024. by NTI

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.

« Back to articles