The rates applicable to employment law change every April, and 2025 is no exception. The following increases have now come into force:
National living and minimum wage rates from 1 April 2025
- £11.44 to £12.21 for workers aged 21 or over (National Living Wage) (6.7% increase)
- £8.60 to £10 for workers aged 18 to 20 (16.3% increase)
- £6.40 to £7.55 for workers aged under 18 who are no longer of compulsory school age (18% increase)
- £6.40 to £7.55 for apprentices under 19 or over 19 and in the first year of their current apprenticeship (18% increase)
The above increases were announced by the Government in 2024, following a full acceptance of the recommendations made by the Low Pay Commission.
Statutory family-related pay from April 2025
- The weekly rate of statutory maternity pay, maternity allowance, adoption pay, paternity pay, shared parental pay, and parental bereavement pay has increased from £184.30 to £187.18.
- The changes came into effect on 7 April 2025 for all statutory family-related payments, except for maternity allowance, which will increase from 11 April 2025.
- The lower earnings limit, which is the weekly amount of earnings that allows an employee to qualify for all of the above-listed payments except for the maternity allowance, has risen from £123 to £125.
- The lower earnings limit for maternity allowance has remained at £30.
Statutory sick pay from April 2025
The weekly rate has increased from £116.75 to £118.75.
The increases to statutory family-related pay and statutory sick pay, as published by the Department for Work and Pensions, evidence a 1.7% increase, which is in line with the Consumer Price Index to September 2024.
National Insurance changes
- Employer contribution rates have increased from 13.8% to 15%
- The National Insurance threshold has decreased from £9,100 to £5,000
- The worker’s allowance has risen from £5,000 to £10,500
The Employment Rights (Increase of Limits) Order 2025
- The cap on a week’s pay for statutory redundancy pay calculations has increased from £700 to £719
- The limit on the amount of compensatory award in unfair dismissal claims has risen from £115,115 to £118,223
- The statutory guarantee payment has increased from £38 to £39 per day
The above changes took effect from 6 April 2025.
Comment
The new rates are an expected employment law update. However, with the Employment Rights Bill 2024 anticipated to receive royal assent this year, please keep an eye on our social media and website for further employment law updates and guidance on how best to prepare for the upcoming changes.
How we can help?
Chloe Hickling is a Trainee Solicitor in our expert Employment Law team.
If you require advice regarding the employment law rate changes or any related subjects, please contact Chloe or another member of our team in Derby, Leicester or Nottingham on 0800 024 1976 or via our online enquiry form.
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