April 2025 Statutory Changes: What Employers Need to Know
Starting 1 April 2025, the National Minimum Wage (NMW) and National Living Wage (NLW) rates have risen, benefitting over 3 million workers across the UK. This is part of the government’s ongoing commitment to ensure fair pay for all workers, including apprentices.
For employers, it is crucial to stay ahead of these changes to maintain compliance, avoid penalties, and ensure your employees are paid fairly.
What Do Employers Need to Do?
- To ensure your employees are being paid correctly, visit Check Your Pay - Gov.uk for the updated rates.
- Adjust your payroll system to reflect the new rates and make sure all employees are paid according to the changes.
- Let your staff know about the upcoming pay changes. Clear communication helps avoid confusion and keeps employees informed.
- If you are unsure how to implement the changes, the ACAS Helpline is a valuable resource for advice on paying your workers correctly.
What are the New NMW and NLW Rates?
- 21 and Over: £12.21 per hour
- 18 to 20: £10.00 per hour
- 16 to 17: £7.55 per hour
- Apprentices: £7.55 per hour
Other Key Changes Employers Should Know About:
April 2025 also brings several important statutory updates that could impact your business:
- The rate for Employers' National Insurance Contributions will increase from 13.8% to 15%. Additionally, the threshold for employers to pay National Insurance Contributions will lower from £9,100 to £5,000.
- The weekly rate for statutory sick pay will rise to £118.75, with the lower earnings limit to qualify for statutory sick pay increasing to £125 per week.
- The cap on a week’s pay for redundancy calculations will rise from £700 to £719. Additionally, the maximum compensatory award in unfair dismissal claims will increase from £115,115 to £118,223.
- The daily rate for statutory guarantee pay will increase from £38 to £39.
With these important changes coming into effect, it is essential for employers to familiarise themselves with the new rates and statutory adjustments. By doing so, employers will avoid any legal pitfalls, maintain a compliant business, and ensure their employees are fairly compensated.
If you wish to discuss this further, or if you have any other employment law enquiries, please contact Rebecca Ellerbeck and Lucy Marshall of Rowberrys at employment@rowberrys.co.uk.