April 2025 pay rate increases

legal updates

The new statutory pay rates came into force in early April. If you haven’t yet updated your payroll systems, here’s what you need to know to stay compliant.

Read our disclaimer keyboard_arrow_down

This website content is intended as a general guide to law as it applies to the motor trade. Lawgistics has taken every effort to ensure that the contents are as accurate and up to date as at the date of first publication.

The laws and opinions expressed within this website may be varied as the law develops. As such we cannot accept liability for or the consequence of, any change of law, or official guidelines since publication or any misuse of the information provided.

The opinions in this website are based upon the experience of the authors and it must be recognised that only the courts and recognised tribunals can interpret the law with authority.

Examples given within the website are based on the experience of the authors and centre upon issues that commonly give rise to disputes. Each situation in practice will be different and may comprise several points commented upon.

If you have any doubt about the correct legal position you should seek further legal advice from Lawgistics or a suitably qualified solicitor. We cannot accept liability for your failure to take professional advice where it should reasonably be sought by a prudent person.

All characters are fictitious and should not be taken as referring to any person living or dead.

Use of this website shall be considered acceptance of the terms of the disclaimer presented above.

The new financial year has started, and with it, updated statutory pay rates are now in effect. If you haven’t yet updated your payroll or employment documentation, here’s a quick reminder of the new figures introduced in April 2025.

National Minimum and Living Wage Rates:

CategoryFrom April 2025
National Living Wage (21+)£12.21
National Minimum Wage (18–20)£10.00
National Minimum Wage (16–17)£7.55

Statutory Pay Rates (per week):

TypeFrom April 2025
Statutory Sick Pay (SSP)*£118.75
Statutory Maternity Pay (SMP)£187.18
Statutory Paternity Pay (SPP)£187.18
Shared Parental Pay (ShPP)£187.18
Statutory Adoption Pay (SAP)£187.18
Statutory Parental Bereavement Pay (SPBP)£187.18

*Note: SSP applies from 6 April 2025. All other rates came into effect from 1 or 2 April 2025.

It is essential that all employees are paid at or above the applicable minimum rate for their age group. Failure to do so is a breach of employment law and could result in penalties for underpayment.

If you’re unsure whether your pay structure is compliant, or need help applying the new rates to your payroll systems, our legal and HR experts are on hand to assist.

WeRecruit Auto LtdPermanent Automotive Recruitment from an experienced and trustworthy recruitment partner.

We cover roles within all departments and sectors of the Automotive industry, and are here to listen to your specific needs and find the most suitable candidates to fit your business.

Jide-Ofor OkagbueLegal AdvisorRead More by this author

Related Legal Updates

April 2023 Pay Rate Increases

The new financial year is upon us, with new rates abound.

IR35 – New off payroll working rules

If a business meets two or more of these requirements, then it is exempt from the changes to the IR35 rules.

April 2021 brings increases

Every April there is a slight increase to the National Minimum Wage (NMW)/National Living Wage (NLW) and other key statutory payments.

Statutory Sick Pay (SSP) for employees who are self-isolating

SSP must be paid from the first day of absence if an employee is self-isolating.

It’s an annual leave rollover

Any worker who has not been able to take some or all of their holiday allowance due to the effects of coronavirus will be entitled to carry forward their annual leave.

COVID-19: Feeling vulnerable about going back to work

What if an employee has some health conditions but is not extremely vulnerable?

COVID-19: Changes to statutory sick pay

THE HMRC have updated the statutory payment manual to clarify that employees do not quality for SSP if they are on furlough.

Get in touch

Complete the form to get in touch or via our details below:

Phone
01480 455500
Address

Vinpenta House
High Causeway
Whittlesey
Peterborough
PE7 1AE

By submitting this quote you agree to our Terms & Conditions and Privacy & Cookies Policy.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.