In April 2025, several significant changes to statutory rates and employment law rules will come into effect in the UK.
Key updates include:
National Minimum and Living Wage Increases
From 1 April 2025, all UK employers must apply increased minimum and living wage rates. The most significant change is the extension of the National Living Wage to workers aged 21 and over, rather than 23 and over.
| Age Group | Old Rate (2024) | New Rate (2025) |
|---|---|---|
| National Living Wage (21+) | £11.44 | £12.21 |
| 18–20 | £8.60 | £10.00 |
| 16–17 and Apprentices | £6.40 | £7.55 |
| Accommodation Offset (daily) | £9.99 | £10.66 |
Statutory Sick Pay (SSP)
From 6 April 2025, the statutory rate of sick pay will increase. Employers must ensure payroll systems reflect the new rate and minimum earnings threshold to avoid underpayments.
| Category | Old Rate (2024) | New Rate (2025) |
|---|---|---|
| SSP Weekly Rate | £116.75 | £118.75 |
| Minimum Earnings Threshold | £123.00 | £125.00 |
Family-Related Statutory Payments
From 6 April 2025, the weekly rates for statutory maternity, paternity, adoption, shared parental and parental bereavement pay will rise. Employers must apply the updated rates when calculating employee entitlements.
| Type of Payment | Old Rate (2024) | New Rate (2025) |
|---|---|---|
| Maternity, Paternity, Adoption, Shared Parental & Bereavement Pay | £184.03 | £187.18 |
| Minimum Earnings Threshold | £123.00 | £125.00 |
Employment Tribunal Compensation Limits
From 6 April 2025, the limits that apply to certain compensation awards at Employment Tribunals will increase. Employers facing claims for unfair dismissal should be aware of the higher potential liabilities.
| Compensation Type | Old Limit (2024) | New Limit (2025) |
|---|---|---|
| Cap on a Week’s Pay | £700 | £719 |
| Maximum Compensatory Award | £115,115 | £118,223 |
Vento Bands for Injury to Feelings
From 6 April 2025, the Vento bands, which guide compensation for injury to feelings in discrimination claims, will be increased. Tribunals will apply the new bands in any claim presented on or after that date.
| Band | Old Range (2024) | New Range (2025) |
|---|---|---|
| Lower | £1,100 – £11,200 | £1,200 – £12,100 |
| Middle | £11,200 – £33,700 | £12,100 – £36,400 |
| Upper | £33,700 – £56,200 | £36,400 – £60,700 |
Employer National Insurance Contributions (NICs)
From 6 April 2025, employers will pay a higher rate of National Insurance Contributions. The threshold for paying these contributions will also be reduced, affecting lower earners.
| NIC Category | 2024/25 | 2025/26 |
|---|---|---|
| Employer NIC Rate | 13.8% | 15.0% |
| Secondary Threshold (annual) | £9,100 | £5,000 |
Neonatal Leave and Pay
From 6 April 2025, eligible employees will have the right to take paid leave if their baby requires neonatal care. Employers must prepare policies and payroll systems to administer this new right.
| Category | 2025 Introduction |
|---|---|
| Neonatal Leave Duration | Up to 12 weeks |
| Neonatal Statutory Pay | £187.18/week |
| Eligibility | Baby in neonatal care |
Gender Pay Gap Reporting Deadlines
Employers with 250 or more employees must submit gender pay gap data by the deadlines based on their sector. These obligations remain unchanged, but employers should ensure data collection and reporting are up to date.
| Employer Type | Snapshot Date | Reporting Deadline |
|---|---|---|
| Public Sector | 31 March 2024 | 30 March 2025 |
| Private/Voluntary | 5 April 2024 | 4 April 2025 |
Need assistance?
In light of theses changes, employers should review and update their payroll systems, employment contracts and policies to ensure compliance. It’s also advisable to communicate these updates to staff.
For advice on these changes and their impact on your organisation, contact us.
Author
Founder and Managing Director Anne Morris is a fully qualified solicitor and trusted adviser to large corporates through to SMEs, providing strategic immigration and global mobility advice to support employers with UK operations to meet their workforce needs through corporate immigration.
She is a recognised by Legal 500 and Chambers as a legal expert and delivers Board-level advice on business migration and compliance risk management as well as overseeing the firm’s development of new client propositions and delivery of cost and time efficient processing of applications.
Anne is an active public speaker, immigration commentator, and immigration policy contributor and regularly hosts training sessions for employers and HR professionals
