Employment law update – all change from April 2025

From April 2025, the rates used for calculating employment entitlements will change. We have summarised the new amounts below.

Unfair dismissal

From 6 April 2025 the maximum Compensatory Award for unfair dismissal will rise to £118,223, or 1 years’ pay (whichever is lower).

The Maximum Basic Award will remain as £21,000 (maximum weekly pay used to calculate this award is now £700 per week).

Statutory Guarantee Pay

From 6 April 2025 the Statutory Guarantee Pay will increase from £38 to £39 per day.

Statutory Redundancy Pay (SRP)

For redundancies which take effect after 6 April 2025, the amount of the legal minimum redundancy pay due will rise. The maximum amount of an employee’s weekly pay to use in the calculation is now £719.

SRP is calculated based on the employee’s weekly pay, multiplied by:

• For each year employed under the age of 22: 0.5
• For each complete year employed aged between 22 and 40: 1
• For each complete year employed aged 41 or over: 1.5

Statutory Sick Pay

From 6 April 2025 this increases to:

• £118.75 per week for a maximum of 28 weeks

Family leave payments (note from 7 April 2025)

Statutory Maternity Pay

• 90% of average weekly earnings for the first 6 weeks.
• £187.18 per week or 90% of average weekly earnings (if lower) for up to 33 further weeks

Statutory Adoption Pay

• 90% of average weekly earnings the first 6 weeks
• £187.18 per week or 90% of average weekly earnings (if lower) for up to 33 further weeks

Statutory Paternity Pay

• £187.18 per week or 90% of average weekly earnings (if lower) for up to 2 weeks

Shared Parental Pay

• £187.18 per week or 90% of average weekly earnings (if lower) for up to 39 weeks

Statutory Parental Bereavement Pay

• £187.18 per week or 90% of average weekly earnings (if lower) for up to 2 weeks

Statutory Neonatal Pay

Read our article which explains this new right introduced from 6 April 2025.

• £187.18 per week or 90% of average weekly earnings (if lower)

National Minimum Wage (note from 1 April 2025)

• National Living Wage (now applicable for all adults 21+): £12.21 per hour
• Aged 18 to 20 inclusive: £10 per hour
• Aged under 18 (but above compulsory school leaving age) £7.55 per hour
• Apprentices (note only if the apprentice is aged under 19 or aged 19 or over and in the first year of their apprenticeship): £7.55 per hour

Injury to Feelings Award (note from 6 April 2025)

• Lower band for less serious cases: £1,200 to £12,100
• Middle band for cases that do not merit an award in the upper band: £12,100 to £36,400

Upper band for the most serious cases: £36,400 to £60,700 (with only the most exceptional cases capable of exceeding £60,700).

How we can help

We would be happy to advise you further on how to protect your position (as an employer, employee or worker), please contact a member of our employment law team.