Employment Law Changes from April 2025 – what do employers need to know?

As part of the government’s pledge to deliver on its promise to Make Work Pay, we will see various statutory payment rate changes from April 2025 as well as an increase to the minimum wage and Neonatal Care Leave becoming a day 1 right.

 

What are the statutory pay changes coming into effect from 6th April 2025?

Statutory Sick Pay (SSP) - The rate of SSP will increase to £118.75 per week (up from £116.75).

Statutory Maternity, Paternity, adoption and shared parental pay - This rate will rise from £184.03 to £187.18 per week.

Statutory Parental Bereavement Pay - Paid to individuals who need to take time off work if their child dies or there is a stillbirth, this rate will also rise to £187.18 per week.

The lower earnings limit - the weekly earnings threshold for qualifying for these payments (not including maternity allowance) - will also increase to £125 from £123. The threshold for maternity allowance is unchanged at £30 per week.

 

What are the changes to the Minimum Wage from 1^st April 2025?

• National Living Wage for over 21s: £11.44 to £12.21
• National Minimum Wage for 18- to 20-year-olds: £8.60 to £10
• National Minimum Wage for under 18s: £6.40 to £7.55
• The Apprentice rate: £6.40 to £7.55

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What are the changes to Neonatal Care Leave from 6^th April 2025?

Neonatal Care Leave will become a day 1 right from 6^th April 2025. Neonatal Care Leave will apply to parents of babies who are admitted into neonatal care and require seven or more days of continuous neonatal care within the first 28 days of their birth. 

Neonatal care pay is also available to some employees. To qualify for statutory neonatal care pay, an employee must have been continuously employed for at least 26 weeks and their average weekly earnings (over a defined eight-week period) must meet or exceed the lower earnings limit. It is paid at the same rate as statutory paternity pay or shared parental pay.

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You may also be interested in reading about the recent proposed changes to the Employment Rights Bill

 

If you would like advice on these changes and support to ensure your business is compliant, please get in touch with our Employment Law experts at employment@bannerjones.co.uk