Major Employment Law Changes from April 2025: What UK Employers Must Know Don’t Risk Penalties — Let the Experts Help
From April 2025 Employers need to be aware of a number of changes that will be coming into effect.
The National Minimum Wage is the minimum pay per hour almost all workers are entitled to by law. Employers should ensure compliance to avoid penalties and reputational damage. This will involve reviewing the pay structure to ensure no inadvertent breaches, particularly in relation to part-time salaried workers, salary sacrifice schemes, or deductions that could take wages below the legal minimum.
Employers signed up to pay the Real Living Wage must increase pay to £12.60 in the UK and £13.85 in London by 1 May 2025 if they wish to retain their accreditation from the Living Wage Foundation.
The rates below are for the National Living Wage (for those aged 21 and over) and the National Minimum Wage (for those of at least school leaving age). The rates change on 1 April every year. More info on Minimum Wage.
| Age Group | April 2025 Rate |
|---|---|
| 21 and over | £12.21 |
| 18 to 20 | £10.00 |
| Under 18 | £7.55 |
| Apprentice | £7.55 |
2. Increases to statutory sick pay and other benefits from 6 April 2025
- Statutory Sick Pay will increase to £118.75 per week.
- Statutory Maternity, Paternity, Adoption, Shared Parental, and Parental Bereavement Pay will rise to £187.18 per week.
- The lower earnings limit required to qualify for these payments will increase to £125 per week.
3. Changes to Employers’ National Insurance Contributions from 6 April 2025
The rate of Employers’ National Insurance Contributions (NICs) will rise from 13.8% to 15%. Additionally, the threshold at which employers begin paying NICs on employee salaries will be reduced from £9,100 to £5,000.
4. Employment Allowance Increases
Employment Allowance will increase from £5,000 to £10,500 and will no longer be limited to employers whose prior NIC bill was under £100,000. This increase offers partial relief against the NIC rate and threshold changes.
Employment Allowance is applied as a monthly offset to your Employer’s National Insurance liability with HMRC.
5. New Reporting Requirements for Directors of Close Companies
From April 2025, it will be mandatory for directors of close companies to report the following:
- Value of dividends received from the company
- Percentage shareholding in the company
- Director’s full name
- Company’s registered number
It is essential that the information reported matches the records at Companies House to avoid inconsistencies with the director’s personal tax return.
Need Help Navigating These Changes?
Let J&J Accountants help your business stay compliant and financially prepared. Whether it’s payroll, reporting, or tax efficiency — we’re here to guide you through the April 2025 updates.
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