As we enter April, UK employers must prepare for several employment law changes. There wasn’t much announced in terms of employment law in the recent Spring Statement, and as such, these April updates mostly stem from the Autumn Budget presented back in October 2024.
Major areas impacted include National Insurance contributions, National Minimum and Living Wages, and statutory pay rates.
Here’s an overview to help you prepare for these upcoming adjustments.
From 1 April 2025, the National Living Wage and National Minimum Wage hourly rates had significant increases:
| Age | Current | From April 2025 | Percentage increase |
| Apprentice | £6.40 | £7.55 | 18% |
| 16-17 | £6.40 | £7.55 | 18% |
| 18-20 | £8.60 | £10 | 16.3% |
| 21+ | £11.44 | £12.21 | 6.7% |
These adjustments aim to support workers amid rising living costs, but they will also increase payroll costs for employers. HR and payroll teams must be sure to update their systems to the correct hourly rates to remain compliant.
Coming into effect from 6 April 2025, the main rate of employer National Insurance Contributions (NICs) will rise from 13.8% to 15%. Additionally, the Secondary Threshold – the earnings level at which employers begin paying NICs – will drop from £9,100 to £5,000 per year.
This means employers will incur NICs on a larger portion of their employees’ earnings from this date.
To mitigate the impact of increased employer National Insurance Contributions, the Employment Allowance will increase from £5,000 to £10,500 annually, which will take effect from 6 April 2025.
This allowance enables eligible employers to reduce their NIC liability.
In addition, the previous rule for eligibility (which restricted the allowance to employers with an annual NIC liability under £100,000 only) will be removed – allowing more businesses to benefit.
Also coming into effect from 6 April 2025, statutory pay rates for maternity, paternity, adoption, and shared parental leave will increase from £184.03 to £187.18 per week.
Statutory Sick Pay (SSP) will also rise from £116.75 to £118.75 per week.
The limit on a week’s pay used for calculating statutory redundancy pay, along with the unfair dismissal basic award, will increase from £700 to £719.
Again, employers should update their payroll software in line with these changes to ensure they don’t get hit with hefty fines for noncompliance.
A new statutory entitlement, Neonatal Care Leave (and Pay), will be introduced from 6 April 2025, allowing eligible employees up to 12 weeks of paid leave if their newborn requires neonatal care for a period of more than seven days.
This initiative supports working parents during challenging times and highlights a need to update existing family-friendly and company leave policies.
You can read the full details about Neonatal Care leave and pay in our recent blog post.
Employers should proactively review and adjust their payroll systems, budgets, and HR policies to accommodate these changes. Staying informed and prepared will ensure compliance and support your workforce effectively.
While not yet law, the proposed Employment Rights Bill announced last year is still making news with potential reforms, including:
These reforms are still pending approval and, as such, are not expected to come into effect until sometime in 2026. Once regulations around these reforms are confirmed, we will share more information.
Get in touch with us today if you would like a hand in navigating these April employment law changes and updating or creating new policies and documentation – we will be more than happy to support!
