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National Living Wage and Minimum Wage - Rate Changes

National Living Wage and Minimum Wage

The following new rates will come into force on 1 April 2025:

Number April 2024 (current rate) April 2025
21 and over £11.44 £12.21
18 to 20 £8.60 £10.00
Under 18 £6.40 £7.55
Apprentice £6.40 £7.55

A full time employee that is over 21 will soon be earning nearly £24,000 per annum which could mean that more employees are close to the minimum wage. Having an employee working close to the minimum wage poses risks to businesses. For example, if an employee works any overtime, they may then fall below the minimum wage.


Statutory Parental Payments

From 6 April 2025, the statutory weekly rate for maternity, paternity, adoption shared parental and parental bereavement pay increases to £187.18 from £184.03. For Maternity and Adoption pay, the first six weeks of leave are paid at 90% of an employee’s average weekly earnings, with the following 33 weeks paid at the lower of that rate or the statutory weekly rate. Statutory Paternity and Statutory Parental Bereavement Pay give two weeks at the weekly rate and Shared Parental Pay gives up to 37 weeks for one parent at a time at the statutory weekly rate.


Statutory Sick Pay

From 6 April 2025, the weekly rate for Statutory Sick Pay will increase from £116.75 to £118.75.


Employer’s National Insurance Contributions

From 6 April 2025 there will also be a change in the rate of employer’s National Insurance Contributions which is increasing from 13.8% to 15% and there will be a decrease in the threshold after which employers must pay national insurance contributions from £9,100 per annum to £5,000 per annum.


Increase to maximum compensation and weekly pay limits

For terminations that take effect from 6 April 2025, the limit on a week’s pay will increase to £719 for the purposes of calculating statutory redundancy pay and the basic award for unfair dismissal so the maximum amount will increase to £21,570.


The maximum compensatory award will increase to £118,223.


Vento Bands

The guidelines for calculating discrimination will increase for claims presented at tribunal from 6th April 2025 as follows:

  • Lower band - £1,200 to £12,100 (less serious cases);
  • Middle band of £12,100 to £36,400 (cases that do not merit an award in the upper band);
  • Upper band of £36,400 to £60,700 (the most serious cases) and the most exceptional cases capable of exceeding £60,700.



Our expert employment law solicitors all have many years’ experience advising individuals who are in your position. We will be able to guide you through the process and to help you secure the best possible outcome.


We offer a range of services, so please contact our friendly customer services team to discuss further via hello@kilgannonlaw.co.uk or 0800 915 7777.

This article is for information purposes only and is correct at the time of publication. It does not constitute legal advice 11.01.25


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