Get ready for the Statutory Payments increasing in 2025

Each year statutory payments, employment rates and limits increase, this occurs in April each year, all in all the rises will impact national minimum wage rates, statutory redundancy payments, and statutory sickness payments.

As an Employer, you are legally obliged to meet these minimum requirements, a failure to do so could lead to a claim in a tribunal.

In our article we detail the most important ones for you as an Employer to note below. Why not take a read:

National minimum wage

From 1 April 2025, the national minimum wage rates (including the national living wage rate) will increase as follows:

*Apprentices who are aged 19 or over and have completed the first year of their apprenticeship, are entitled to minimum wage for their age

The daily rate for the accommodation offset limit will increase from £9.99 to £10.66. The accommodation offset limit is the maximum amount you the Employer can subtract from an Employee’s pay for any accommodation provided by you.

Statutory sick pay

Statutory sick pay will increase from £116.75 to £118.75 per week, the rate is live as of 6 April 2025.

As an Employer you cannot normally reclaim SSP from HMRC.

Statutory maternity, paternity, shared parental and adoption payments

Statutory maternity pay will increase from £184.03 to £187.18 per week, live as of 6 April 2025.

Statutory Paternity Pay (up to two weeks), Statutory Shared Parental Pay (up to 37 weeks) and Statutory Parental Bereavement Pay (up to two weeks) all will increase from 6 April 2025 to the same weekly rate of £187.18 or 90% of average weekly earnings,

Eligibility for these payments, weekly earnings threshold will also increase from £123.00 to £125.00.

As an Employer you can reclaim all, or most of these statutory payments from HMRC. 

New in 2025, legislation for Neonatal Care (Leave and Pay) Act 2023

The Neonatal Care (Leave and Pay) Act 2023 allows employed parents to be absent from work for a prescribed period in respect of a child who is receiving or has received, neonatal care. From 6 April 2025, new parents will benefit from a new right to neonatal care leave and pay; a day-one right, with the aim that employed parents can focus on supporting their new family and keep their job secure.

As of 6 April 2025, Employees will be eligible to up to 12 weeks of paid leave (and, where *eligible, pay) this is in addition of any other leave they may be entitled to, including maternity and paternity leave for babies who are admitted into neonatal care up to 28 days old and who have a continuous stay in hospital of seven full days or longer.

*The right to receive statutory neonatal care pay requires 26 weeks of employment and earnings on average of at least £125 a week. The same applies to the entitlement to maternity and shared parental leave pay. 

Employer National Insurance increase

As an Employer the amount of National Insurance you will pay will rise from 13.8% to 15% from 6 April 2025.

The threshold in which businesses start paying National Insurance on worker earnings will decrease from £9,100 to £5,000.

Employment Tribunal Awards and Limits

The statutory limit on many employment tribunal awards will increase, in line with. The Employment Rights (Increase of Limits) Order 2025 The increase(s) apply to events giving rise to compensation that occur on or after 6 April 2025, as in the table below:

*These awards and limits do not include the costs incurred as an Employer preparing and representing at tribunal.

 How can we help you?

At HR and You Ltd we offer you advice, support and guidance and can do this in many ways, you can speak to us at any time by contacting us on: 0333 006949 or email us at [email protected]

We offer a wide range of Retained HR Support packages, these offer you the freedom and peace of mind that your HR and Employment law needs are taken care of, whether you have inhouse HR or not we have you cover 365 days 24/7.

Disclaimer

This article contains a general overview of information only. It does not constitute, and should not be relied upon, as legal advice. You should consult a suitably qualified lawyer on any specific legal problem or matter.

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