Every April, various employment law payment rates are updated, and it’s crucial for employers to stay informed and implement these changes to remain compliant. These updates typically include increases to minimum wage rates, statutory pay entitlements, and other key employment-related payments.
To help you navigate these changes, we’ve provided a summary of the most important updates below. For a comprehensive breakdown of all rate adjustments and policy changes, you can download our detailed Employment Essentials Guide.
From 1 April 2025
Increase in National Minimum Wage
- Aged 21 and over (“The National Living Wage) will increase from £11.44 to £12.21
- Workers aged 18-20 rate will increase from £8.60 to £10.00
- Workers aged 16-17 rate will increase from £6.40 to £7.55
- Apprentice rate (apprentices under 19 or ages 19 or over and in the first year of apprenticeship) will increase from £6.40 to £7.55
From 6 April 2025
Increase in Tribunal Award
- The maximum compensatory award for unfair dismissal will increase from £115,115 to £118,223 (or 52 weeks’ gross pay, whichever is lower).
- The limit on a week’s pay will increase from £700 to £719. This means that the maximum basic award for unfair dismissal and the maximum statutory redundancy payment will each rise from £21,000 to £21,570.
Increase in Statutory Rates
- Statutory maternity, paternity, adoption, shared parental and parental bereavement pay will increase from £184.03 to £187.18 per week, effective from 6 April 2025.
- Statutory sick pay will increase from £116.75 to £118.75 per week, effective from 6 April 2025.
Statutory Neonatal Care Pay
- The Statutory Neonatal Care Pay (General) Regulations 2025 introduce a new entitlement for parents of children who are born after 6 April 2025 who receive neonatal care, allowing them to receive Statutory Neonatal Care Pay (SNCP). SNCP is paid at the statutory prescribed rate (£187.18 from April 2025) or 90% of the employee’s average weekly earnings, whichever is lower.
You can read our full article on the new neonatal care leave and pay here.
Prism services for businesses
Keeping up with employment law changes can be challenging, but our Prism services for businesses provide expert support to ensure you stay informed and compliant. From wage updates to broader employment law matters, we help you navigate the complexities with confidence.
If you’d like to discuss any of the recent changes or need tailored advice, our dedicated employment team is here to help.
Published 4 April 2025
