Blacks Bulletin: Employment Law - 28/3/25
April 2025 increases to employment tribunal compensation limits and National Minimum Wage rates
On 6 April 2025, the following increases to various compensation limits will take effect:
| Compensation | Existing rate | New rate |
| ‘A week’s pay’ for the purpose of calculating redundancy entitlement | £700.00 | £719.00 |
| Maximum compensatory award for unfair dismissal | £115,115.00 | £118,223.00 |
| Minimum basic award for certain unfair dismissal claims | £8,533.00 | £8,763.00 |
| Limit on compensatory award for failure to have a written tips policy and also for failure to allocate tips fairly | £5,000.00 | £5,135.00 |
| Statutory guarantee pay per day | £38.00 | £39.00 |
The National Minimum Wage (NMW) will also increase as follows from 1 April 2025:
| Age/Category | Existing rate | New rate |
| 16 – 17 & apprentices | £6.40 | £7.55 |
| 18 – 20 | £8.60 | £10.00 |
| 21+ (National Living Wage) | £11.44 | £12.21 |
All employers affected by these planned increases need to ensure they have made provisions in their payroll in advance of these changes taking effect.
If you have any questions about the new rates and limits, please e-mail Paul Kelly at PKelly@LawBlacks.com.