The Latest Legislative Changes for Employers: April 2025

1.  The following changes to the hourly rate for the National Minimum Wage (NMW) and National Living Wage will come into effect from 1 April 2025: 

National Living Wage                                              £12.21
NMW for workers aged 18-20                                £10
Young workers rate for workers aged 16-17       £7.55
Apprentices under 19, or over 19 and in the       £7.55
first year of the apprenticeship.

Employers must pay this increase in the next pay reference period after it has taken effect.

2. With effect from 6 April 2025, the weekly rate for Statutory Sick Pay (SSP) will increase from £116.75 to £118.75. 

3.  Family-friendly statutory payments (including statutory maternity, paternity and adoption pay) will increase to £187.18 per week from 6 April 2025.

4.  As of 6 April 2025, the statutory cap on a week’s pay will increase from £700 to £719.

This change applies to terminations of employment taking effect from 6 April 2025.  The cap is used to calculate:

• Statutory Redundancy Pay 
• Basic award calculations, e.g. in respect of unfair dismissal.

5.  As of 6 April 2025, the minimum amount of basic award of compensation for dismissal on trade union, health and safety, occupational pension scheme trustee, employee representative and working time grounds will increase from £8,533 to £8,763.

6.  The limit on the amount of compensatory award for unfair dismissal will rise from £115,115 to £118,223 from 6 April 2025.

7.  The limit on the amount of the compensatory award for failure to allocate and pay tips fairly, failure to have a written policy dealing with qualifying tips, gratuities and service charges and failure to create a record of how they have been dealt with will increase from £5,000 to £5,135 as of 6 April 2025.

8. A new right to statutory neonatal care leave and pay will come into effect from 6 April 2025.

Under the new legislation, parents of babies requiring neonatal care will be entitled to up to 12 weeks of paid leave, in addition to existing parental leave entitlements.