ARTICLE
31 January 2025

New Statutory Rates And Limits

WL
Withers LLP

Contributor

Trusted advisors to successful people and businesses across the globe with complex legal needs
In the usual way, the Department for Work and Pensions has published its planned increases to several statutory payments.
United Kingdom Employment and HR

In the usual way, the Department for Work and Pensions has published its planned increases to several statutory payments.

These are as follows and will take effect from 6 April 2025.

  • The weekly rate of statutory sick pay (SSP) will be £118.75 (up from £116.75).
  • The weekly rate of statutory maternity pay, maternity allowance, statutory paternity pay, statutory shared parental pay, statutory adoption pay, and statutory parental bereavement pay will be £187.18 (up from £184.30).

The lower earnings limit (the weekly earnings threshold for qualifying for the above payments, except maternity allowance) will be £125 (up from £123). For maternity allowance, the threshold remains £30 per week.

The Government also announced recently that, having accepted in full the recommendations of the Low Pay Commission, from 1 April 2025, the rates of the national minimum wage (NMW) will be as follows:

  • National Living Wage (aged 21 and above): £12.21 (6.7% increase)
  • 18 - 20 year old rate: £10.00 (16.3% increase)
  • 16 - 17 year old rate: £7.55 (18% increase)
  • Apprentice rate: £7.55 (18% increase)
  • Accommodation offset: £10.66 (6.7% increase)

The Government claims that the increases above are fair and support workers' living standards. Some commentators have argued that, together with changes to employer's National Insurance, they may lead employers to cut back on hiring, freeze pay and/or make redundancies. Time will tell.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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