Key Financial Changes to Employment Law in 2025

There are several key financial changes expected in UK employment law, which will come into effect in April 2025.  These changes will have implications for both employers and employees, and it’s vital that businesses are prepared for the adjustments.

1. National Minimum Wage (NMW) and National Living Wage (NLW):

   • The NLW is set to rise on 01 April 2025, impacting those aged 21 and over.  It will increase to £12.21 per hour, and for those aged 18-20, the NMW will rise to £10.00 per hour.  Under 18’s and Apprentices NMW will rise to £7.55.  It’s crucial that employer’s budget for these increases to remain compliant and avoid underpayment.

2. Statutory Sick Pay (SSP):

   • From April 2025, the weekly SSP rate will rise to £118.75.  The employee lower earnings limit remains for eligibility for the above statutory payments remains increases from £125 per week.

3. Family Friendly Pay:

   • From April 2025, Statutory Maternity Pay, Statutory Paternity Pay, Statutory Shared Parental Pay, Statutory Adoption Pay, and Statutory Bereavement Pay all increase to £187.18 per week.

Employers must remain vigilant about compliance with new legislation. Staying ahead of these changes will ensure that businesses avoid legal challenges and maintain a positive working relationship with their employees. To ensure your business is compliant with the key financial changes in UK employment law, contact a member of our Employment Law team.

How To Contact Us:

To contact a member of our team, you can fill in our online enquiry form, email info@fraserdawbarns.com, or call your nearest office below. If you’d like to speak to a member of our team at one of our offices across Norfolk and Cambridgeshire, visit our offices page.

Wisbech: 01945 461456

March: 01354 602880

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This article aims to supply general information, but it is not intended to constitute advice. Every effort is made to ensure that the law referred to is correct at the date of publication and to avoid any statement which may mislead. However, no duty of care is assumed to any person and no liability is accepted for any omission or inaccuracy. Always seek advice specific to your own circumstances. Fraser Dawbarns LLP is always happy to provide such advice.