With the commencement of the new financial year, it’s important to note some significant changes to national minimum wage rates and other prescribed rates of pay. Read on to find out more.

What's happened to the National Minimum Wage?

With effect from 1 April 2025, NMW rates increased as follows:

• ‘National Living Wage’ (21 and over) increased to £12.21 per hour;
• The NMW for those aged 18 to 20 increased to £10.00 per hour;
• The NMW for those aged under 18 increased to £7.55 per hour; and
• The NMW for apprentices also increased to £7.55 per hour.

It is important to note that the right to receive the ‘National Living Wage’ has now be extended to those aged 21 (rather than 23) and over.

Other important rate changes

While we’re on the subject of rates changes, in relation to dismissals occurring on or after 6 April 2025:

• the maximum ‘Compensatory Award’ for unfair dismissal rose from £115,115 to £118,223; and
• the limit on a week's pay for statutory redundancy payment (SRP) purposes rose from £700 to £719, which means that the maximum SRP will now be £21,570.

Also, with effect from 8 April 2025, the basic rate at which Statutory Sick Pay is paid increased from £116.75 per week to £118.75 per week and the flat rate at which statutory maternity pay is paid increased from £184.03 per week to £187.18 per week.

Want to know more?

If you need more detailed advice on any of these changes and how they may impact on you or your business, please get in touch.