What statutory changes will be taking place in April 2025?

What changes will be taking place in April 2025?

National Living and National Minimum Wage increases

On 1st April, the National Living Wage and the National Minimum Wage will increase:

• Ages 21 and over: £11.44 to £12.21 (+ 0.77p providing an extra £1,400 a year for eligible full-time workers).
• Ages 18 to 20: £8.60 to £10.00 (+ £1.40 boosting eligible full-time workers’ pay by £2,500 a year).
• Under 18s and apprentices: £6.40 to £7.55 (+ £1.15).
• If apprentices are aged 19 or over and have completed the first year of their apprenticeship, they are entitled to minimum wage for their age

Statutory pay increases

From 6th April 2025, statutory pay rates will increase:

To be eligible for these payments, the weekly earnings threshold will also increase from £123 to £125.

National Insurance increase for employers

The amount of National Insurance employers pay will rise from 13.8% to 15% from 6th April.

The threshold in which businesses start paying National Insurance on worker earnings will decrease from £9,100 to £5,000.

Although this change will affect employers in terms of what they pay their staff, further down the line, employees could face restrictions in wage rises and fewer benefits including the salary sacrifice scheme.

For all our HR Connect Payroll customers we will ensure all these changes are in place.

New legislation for Neonatal Care (Leave and Pay) Act 2023

The Neonatal Care (Leave and Pay) Act 2023 will allow employed parents to be absent from work for a prescribed period in respect of a child who is receiving or has received, neonatal care. From 6th April, around 60,000 new parents will benefit from a new right to neonatal care leave and pay; a day-one right which ensures employed parents can focus on supporting their new family without the worry and guilt of choosing to spend time with their baby and keeping their job.

Employees will receive up to 12 weeks of paid leave (and, if eligible, pay) on top of any other leave they may be entitled to, including maternity and paternity leave for babies who are admitted into neonatal care up to 28 days old and who have a continuous stay in hospital of seven full days or longer.

Please look out for our free recorded webinar which will take you through the workings of this new piece of legislation, we will also be providing our Premium and Enhanced customers with access to an updated Policy to reflect these changes.

Changes to Tribunal Awards

The Employment Rights (Increase of Limits) Order 2025 makes the following changes:

• The maximum amount of a ‘week’s pay’ - used to calculate statutory redundancy pay and various other payments (e.g. the basic award for unfair dismissal) - increases from £700 to £719
• The maximum compensatory award for unfair dismissal increases from £115,115 to £118,223 (the upper limit remains the lower of a year’s salary or the maximum statutory limit)

The new rates apply where the event giving rise to compensation or payment occurs on or after 6th April 2025. For example, in the case of unfair dismissal the rates apply to all dismissals where the effective date of termination falls on or after this date. Where the dismissal or relevant event falls before 6th April, the old limits will still apply, irrespective of the date on which compensation is awarded.