April 2025: key dates for employers

National Minimum Wage

1 April 2025

The National Living Wage and the National Minimum Wage increased as follows:

• National Living Wage (workers aged 21 and over) from £11.44 per hour to £12.21
• Aged 18-20 from £8.60 per hour to £10.00
• Aged 16-17 from £6.40 per hour to £7.55
• Apprentice rate from £6.40 per hour to £7.55

The 16.3% increase in the rate for those aged 18 to 20 is the largest increase ever. It is intended to narrow the gap with the NLW because it is expected that the adult rate will be extended to 18-year-olds in the future.

Employers should audit their workforce regarding the ages of their staff and should inform payroll or payroll providers of the details of anyone benefitting from the increases to ensure that the new rates are paid.

Statutory Payments

6 April 2025

• The weekly rate for statutory sick pay increases from £116.75 to £118.75
• The weekly rate of statutory maternity, adoption, paternity, shared parental and parental bereavement leave pay increases from £184.03 to £187.18 or 90% of the employee’s average weekly earnings if this is less than the statutory rate. The same rate applies to the new right to neonatal care pay.
• The lower earnings limit increases from £123 per week to £125

Employers should Inform individuals who are about to take family leave about the increase in rates so that the correct amount is paid.

Employment Tribunal Limits

6 April 2025

• For dismissals on or after 6 April 2025 a “week’s pay” which is used to calculate statutory redundancy pay and the Employment Tribunal basic award increases from £700 to £719
• The maximum compensatory award for unfair dismissal increases from £115,115 to £118,223
• In respect of claims presented on or after 6 April 2025, the Vento bands for injury to feelings awards increase as follows:
  • Lower band of £1,200 to £12,100 (less serious cases)
  • Middle band of £12,100 to £36,400 (cases that do not merit an award in the upper band)
  • Upper band of £36,400 to £60,700 (the most serious cases), with the most exceptional cases capable of exceeding £60,700

Employers need to be aware of the new limit on a “week’s pay” if embarking on redundancy exercises in the weeks and months ahead and to be aware of the increased limits if involved in Employment Tribunal proceedings.

Neonatal Care Leave

6 April 2025

• The Neonatal Care Leave and Miscellaneous Amendments Regulations 2025 come into force on 6 April 2025 and apply where a baby is born on or after 6 April 2025. The Regulations provide for a day-one right for employees to take neonatal care leave where a child has received neonatal care for an uninterrupted period of seven days excluding the day that the neonatal care starts. The right applies to each parent separately and up to 12 weeks leave may be taken within 68 weeks of the birth.
• The Statutory Neonatal Care Pay (General) Regulations 2025 also come into force on 6 April 2025. Where the employee has 26 weeks of continuous service and earnings of an average of at least £125 a week (the Lower Earnings Limit) they will be entitled to statutory neonatal care leave pay of £187.18 a week.

Employers need to prepare a neonatal leave policy, consider how this should be publicised and ensure that employees understand the process for taking leave.

They also need to consider whether any training is needed for managers who deal with applications for neonatal care leave and what support to provide employees at a very stressful time.

For more details see our article Neonatal care leave.

Pensions

6 April 2025

• The basic state pension (that is, for those who reached state pension age before 6 April 2016) and new state pension will be uplifted by 4.1% from 6 April 2025.
• The full basic state pension increases from £169.50 a week to £176.45. The full new state pension increases from £221.20 per week to £230.25.

Comment

As can be seen, there is plenty to occupy employers and HR professionals in the months ahead. Further consultation papers on key measures in the Employment Rights Bill are expected and we will keep you updated. The Bill continues to make its way through the Parliamentary process and had its First and Second Readings in the House of Lords on 14 and 27 March 2025.