Employment law rate changes in April 2025

A number of proposed employment law changes came into force in April 2025. These include:

01 April 2025

• The national living wage (for workers aged 21 and over) increased from £11.44 per hour to £12.21 per hour.

• The standard minimum wage rate for younger workers (aged 18 to 20) rose from £8.60 to £10.00 per hour.

6 April 2025

• Compensation for unfair dismissal increased to the lower of £118,223 (up from £115,115) and one year’s pay.

• The limit on a week’s pay used for calculating statutory redundancy pay (and the unfair dismissal basic award) increased from £700 to £719.

Further detail on other compensation limit increases is available here.

6 April 2025

Eligible employees are entitled to statutory neonatal care pay (SNCP) in respect of children born on or after 6 April 2025. This is expected to be paid at the same rate as statutory paternity pay or statutory shared parental pay, £187.18.

Statutory sick pay rose from £116.75 to £118.75 per week.

Statutory maternity, adoption, paternity, shared parental and parental bereavement pay increased from £184.03 to £187.18 per week.

Full details of all anticipated employment law changes are available here.