Employment Law Solicitor explains rate changes
April 2025 sees the following increases to employee related statutory payments:
National Minimum Wage
(Increases apply from 1st April 2025)
- National Living Wage (21 and over): £12.22 (increased from £11.44)
- Age 18 – 20 (inclusive) £10.00 (increased from £8.60)
- Age 16 – 18: £7.55 (increased from £6.40)
- Apprentices: £7.55 (increased from £6.40)
- Accommodation offset: £10.66 per day (increased from £9.99)
Statutory Maternity/Paternity/Adoption Pay
Increases apply from 1st April 2025.
The rate for this type of family related statutory pay will increase to £187.18 a week (from £184.03) or 90% of average weekly earnings, whichever is lower. To be eligible for such pay, employees must be earning at least £125 per week before tax.
Note – this is the rate which applies to shared parental leave and after the initial six weeks of maternity or adoption leave. For the first six weeks of maternity or adoption leave, the employee is entitled to 90% of their average weekly earnings during that period and pay during that period is not subject to any cap.
National Insurance Rates
Effective from 6th April 2025, the rate of employer’s national insurance contributions will rise by 1.2% bringing it to 15%.
The threshold at which employers become liable to pay NICs on earnings has also reduced, from £9,100 to £5,000 per year.
Redundancy Pay and Unfair Dismissal Compensation
For redundancies effective on or after 6th April 2025, the statutory weekly pay figure for redundancy payments will increase to £719.00. The maximum redundancy payment therefore increases to £21,570.
The cap on compensatory awards in ordinary unfair dismissal claims increases to £118,223 (from £115,015), or one year’s gross salary, whichever is lower.
Statutory Sick Pay
The amount of statutory sick pay that the employee should receive will depend on their usual working hours and the period of absence, but the maximum rate payable per week will be increasing to £118.75 (from £116.75), effective from 6th April 2025.
The lower earnings limit (LEL) for eligibility purposes will increase from £123.00 per week to £125.00 per week from 6th April 2025.
Employers should take note of these increased rates and ensure that they apply them to any calculations of the relevant pay, after the effective dates.
Contact our Employment Law Solicitors
With offices in Chippenham, Devizes, Marlborough, Royal Wootton Bassett and Swindon; our employment law solicitors are here to support and guide you.
For further information in relation to these rates, or any employment law related issues, please contact employment law Solicitor Rachel Fereday on 01380 722311 or email rachel.fereday@awdry.law.
