UK: April Changes: New Employment Rights and Rates Increases
Authors: Frances Ross and Corinna Harris
We set out the new statutory rates that come into effect in April 2025, as well as the new right to paid neonatal care leave which applies in relation to babies born on or after 6 April 2025.
1 April 2025 – National Minimum Wage increases:
£12.21 per hour for workers aged 21 and over (up from £11.44)
£10 per hour for 18 to 20 year olds (up from £8.60)
£7.55 per hour for 16 and 17 year olds and apprentices (up from £6.40)
6 April 2025:
– Employer National Insurance Contributions (NICs) changes:
Employer NICs rise to 15% of employee earnings (up from 13.8%)
The threshold at which employers start paying employer NICs on a worker’s earnings decreases from £9,100 to £5,000 per year
– Statutory sick pay increases:
New weekly rate: £118.75 (up from £116.75)
– Statutory parental pay increases
New weekly rate: £187.18 – for statutory maternity, paternity, adoption and shared parental pay (up from £184.03)
– Tribunal compensation limits & Statutory redundancy pay increases
New limit on a week’s pay, for the purposes of calculating redundancy and compensation for unfair dismissal awards: £719 (up from £700) – applies where the effective date of termination falls on or after 6 April 2025
The maximum compensatory award for unfair dismissal increases to £118,223 (from £115,115)
– Paid Neonatal Care Leave comes into force:
The new rights will give parents of babies born on or after 6 April 2025 up to 12 weeks’ leave and pay when their baby needs specialist neonatal care for at least seven continuous days within the first 28 days of birth. While neonatal leave will be a day one right, parents will need 26 weeks’ continuous service to qualify for neonatal care pay. This right will be in addition to existing family leave entitlements that parents may have.
Key Action Points for Human Resources and In-house Counsel
The changes to employer NICs will be particularly significant for employers, as well as the substantial increase in NMW rates.
Employers should update their family friendly policies to include provision for the new right to paid neonatal care leave. If you would like assistance with a neonatal care leave policy, please get in touch.
