From 6 April 2025, as is the case each year, the Government will be increasing the level of employment related statutory payments, as well as the compensation limits applicable to certain Employment Tribunal awards; by 2.7% (roughly in line with the Retail Prices Index (“RPI”)).

Below we set out a summary of the key increases, and the new applicable limits.

Increases in employment related statutory payments

These will be as follows:

  • National Minimum Wage will be increasing (on 1 April 2025) as follows:
    • For workers aged over 21, the rate will increase from £11.44 to £12.21 per hour.
    • For workers aged 18 to 20, the rate will increase from £8.60 to £10 per hour.
    • For workers aged 16 to 17, the rate will increase from £6.40 to £7.55 per hour.
    • The apprentice rate will increase from £6.40 to £7.55 per hour.
  • Statutory Sick Pay will be increasing from £116.75 to £118.75 per week.
  • Pay for family related leave (including maternity, paternity, shared parental, adoption and parental bereavement) will increase from £184.03 to £187.18 per week.

The average gross weekly earnings required to qualify for family related leave pay will increase from £123 or more per week, to £125 or more per week.

Increases in compensation limits for Employment Tribunal awards

These will be as follows:

  • The limit on a week’s pay (for calculating statutory redundancy payments and the basic award for unfair dismissal, amongst others) will be increasing from £700 to £719.
  • The maximum basic award for unfair dismissals will be increasing from £21,000 to £21,750.
  • The maximum compensatory award for unfair dismissal will be increasing from £115,115 to £118,223. 

For cases involving unfair dismissal and redundancy, the new figures will apply where the “effective date of termination” falls on or after 6 April 2025.

In addition, the “Vento Bands” for injury to feelings awards (applicable in discrimination claims), will also be increasing from 6 April 2025, as follows:

  • The lower band (for less serious cases) will be increasing from a range of £1,200 to £11,700, to a range of £1,200 to £12,100
  • The middle band (for cases that do not merit an award in the upper band) will be increasing from a range of £11,700 to £35,200, to a range of £12,100 to £36,400
  • The upper band (for the most serious cases) will be increasing from a range of £35,200 to £58,700, to a range of £36,400 to £60,700.

The updated Vento Bands will apply for claims presented on or after 6 April 2025.

If your organisation needs further advice on the new statutory Neonatal Care Leave and Pay scheme, please get in touch and our team of experienced employment lawyers would be happy to help.