Employment law changes from April 2025
Employment law changes are coming into effect from April 2025.
Increases to the National Minimum Wage
From April 1st, 2025, the New National Minimum Wage rates are set to take effect, which the Government hopes will take account of the ongoing cost of living crisis and inflation trends projected up to March 2026. For those workers aged 21 and over, the National Living Wage will rise from £11.44 to £12.21 per hour. For workers aged 18-20, the rise will be from £8.60 to £10.00 per hour. For apprentices and those aged 16-17, the new rate will be up from £6.40 to £7.55 per hour.
Employer National Insurance Contributions Increase
From the 6th April 2025, Employer National Insurance Contributions (NIC) will rise from 13.8% to 15% on employee earnings. Additionally, the earnings threshold for NICs liability will decrease from £9,100 to £5,000 per year, meaning employers will begin paying NICs at a lower earnings level.
Statutory Sick Pay (SSP) Increases
From the 6th of April 2025, Statutory Sick Pay (SSP) will increase from £116.75 per week to £118.75 per week. This change will affect businesses managing long-term sickness absences and the associated costs of this.
Tribunal Compensation Limits and Statutory Redundancy Pay Increases
From the 6th April 2025, new compensation limits for unfair dismissal claims and redundancy pay calculations will be introduced. The figures are yet to be announced.
Statutory Family Pay Increases – 6 April 2025
From the 6th April 2025, the weekly rates for statutory maternity, paternity, adoption, and shared parental pay will rise from £184.03 per week to £187.18 per week.
Introduction of Paid Neonatal Care Leave
The Neonatal Care (Leave and Pay) Act 2023 received Royal Assent in May 2023 and is expected to take effect in April 2025. The Act will introduce a new type of statutory leave and pay for parents with babies who need neonatal care. Entitlement to this leave will be from day one for employees whose babies are admitted into hospital for medical or palliative care of at least seven consecutive days, within the first 28 days of birth. The length of leave will depend on how long the baby spends in hospital but will range from at least one week up to a maximum of 12 weeks, in addition to existing parental leave entitlements. The leave can be taken any time within the first 68 weeks following the baby’s birth. However, employees must have at least 26 weeks of continuous service and earn the lower earnings limit to qualify for statutory neonatal care pay.
The new employment law changes will have a major impact on employers and employees alike. If you need help with an employment matter, please contact us for more information on 01492 874774.