Upcoming HR & Payroll Changes in April 2025: What Employers Need to Know

Rachael Beere
Mar 25
2 min read

The UK government has announced several key updates set to take effect from April 2025 that will impact wages, employer contributions, and statutory payments. These changes are designed to support lower-paid workers amid the rising cost of living. As an employer, it's crucial to understand these updates and ensure your payroll systems and HR policies are ready.

1. National Minimum Wage Increases

Starting in April 2025, the National Minimum Wage will rise across all age groups:

21 and over: £12.21 per hour (up from £11.44)
18 to 20: £10.00 per hour (up from £8.60)
Under 18 & Apprentices: £7.55 per hour (up from £6.40)

These changes reflect the government's continued effort to support low-paid workers and ensure wages align with the cost of living. Employers should prepare for these increases by updating payroll systems, budgeting for higher wage costs, and informing employees accordingly.

2. Employer National Insurance Contributions (NICs)

From April 2025, Employer NICs will rise from 13.8% to 15% of employee earnings. Additionally, the threshold at which employers must start paying NICs will decrease from £9,100 to £5,000 per year.

This change will particularly impact smaller businesses or those with lower-income employees, so early planning is essential. Reviewing your staffing budget and ensuring payroll systems are updated can help mitigate any financial impact.

3. Statutory Sick Pay (SSP)

From April 2025, Statutory Sick Pay will increase from £116.75 to £118.75 per week.

Employers should update their policies to reflect this change and ensure payroll teams are aware of the new rate. This is particularly important for businesses with frequent sick pay claims.

4. Statutory Family-Related Payments

The following statutory payments will increase to £187.18 per week:

Statutory Maternity Pay
Statutory Paternity Pay
Statutory Adoption Pay
Statutory Neonatal Care Pay
Statutory Shared Parental Pay
Statutory Parental Bereavement Pay

Employers should review their family leave policies and ensure these changes are reflected in employee handbooks and payroll systems.

5. Lower Earnings Limit

The Lower Earnings Limit — the minimum an employee must earn to qualify for statutory payments — will rise from £123 to £125 per week.

This change will have a small but important impact on businesses that employ part-time or lower-wage staff. Ensuring this new threshold is accounted for in payroll calculations is key to maintaining compliance.

What Should Employers Do Next?

To ensure your business is ready for these changes:

✅ Review your payroll software to confirm updates are scheduled.✅ Communicate these updates to your HR and finance teams.✅ Update employee handbooks and policies to reflect the new rates.✅ Inform your staff about the upcoming wage increases and statutory pay changes.

💬 Need support managing these changes? As HR specialists, we can help you navigate these updates, update your policies, and ensure your business remains compliant. Get in touch today to discuss how we can support you.