Northern Ireland employment pay-out limits rise with inflation

Northern Ireland employment pay-out limits rise with inflation

Dr Caoimhe Archibald

An inflation-based increase in the limits for payments and awards to workers in relation to certain employment rights will take effect in Northern Ireland next month.

From 6 April, the limit on the compensatory award for unfair dismissal will rise from £118,455 to £123,785, while the maximum amount for a week’s pay for the purpose of calculating redundancy payments will rise from £749 to £783.

The 4.5 per cent increase reflects changes in the Retail Prices Index (RPI) measure of inflation between September 2024 and September 2025.

The increased limits relate to a range of employment rights including statutory redundancy payments; the basic and compensatory awards for unfair dismissal; the limit on guarantee payments made when employees are not provided with work; and the minimum basic award for unfair dismissal in health and safety and certain other cases.

Economy minister Dr Caoimhe Archibald said: “A key focus for me is to safeguard the employment rights of workers and employees.

“This order will make sure that they get fair compensation and that their rights are legally protected if they find themselves in the unfortunate circumstance of needing to receive these kinds of payments or awards.”

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