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Rate Updates 2025 – Employment Law
Alex Murray
Several significant changes in employment law rates are set to take effect in 2025. These updates will impact various aspects of employment, including wages, family-friendly payments, and statutory leave. Below is a detailed overview of the key changes.
National Living Wage and National Minimum Wage
Effective from 1st April 2025, the following changes will be implemented:
- National Living Wage (21 and over): Increased by £0.77 per hour (6.7%) from £11.44 to £12.21
- National Minimum Wage (18-20 years): Increased by £1.40 per hour (16.3%) from £8.60 to £10.00
- National Minimum Wage (16-17 years and apprentices): Increased by £1.15 per hour (18.0%) from £6.40 to £7.55
- Accommodation Offset: Increased by £0.67 per day (6.7%) from £9.99 to £10.66
‘Family-Friendly’ Payments
Starting from 6th April 2025, the rates for statutory family-friendly payments will be updated as follows:
- Statutory Maternity Pay: Increased to £187.18 per week (up from £184.03) after the first six weeks
- Statutory Paternity Pay: The smaller of £187.18 per week or 90% of average weekly earnings
- Statutory Shared Parental Pay: The smaller of £187.18 per week or 90% of average weekly earnings
- Statutory Adoption Pay: Increased to £187.18 per week (up from £184.03) after the first six weeks
- Statutory Parental Bereavement Pay: The smaller of £187.18 per week or 90% of average weekly earnings
Statutory Sick Pay
From April 2025, the rate for statutory sick pay will increase to £118.75 per week.
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Employers should review these changes carefully and ensure compliance to avoid any legal issues.
For further assistance or detailed advice on how these changes may affect your business, please contact our Employment Team.