Lewis Silkin urges Northern Ireland employers to be aware of new statutory payment limits
4th Apr 2025
Law firm Lewis Silkin is encouraging Northern Ireland employers to be aware of some significant fiscal changes to limits and awards for certain employment rights which are due to come into effect on 6th April.
Last week, the Department for the Economy announced an increase in the limits for payments and awards to workers in relation to certain employment rights, which reflect changes in the Retail Prices Index (RPI).
The Department outlined that the maximum limit for Statutory Redundancy Payments will increase to a weekly limit of £749 (up from £729) and the Maximum Statutory Redundancy Payment payable will be £22,470.
The compensatory award for unfair dismissal is also due to be adjusted to £118,455, increasing from £115,341.
There are also national changes to leave and minimum wage rates, which are set by Westminster.
With regard to family leave rates, the weekly rates for various statutory payments will also increase. A new rate of £187.18 (up from £184.03) will apply to statutory maternity, paternity, shared parental and parental bereavement pay.
There will be an uplift in the national living wage rate for those aged 21 and over by 6.7% to £12.21 per hour. For those aged 18-20, minimum wage will rise by 16% to £10.00 per hour, and for 16–17-year-olds, and apprentices, this will be an 18% rase to £7.55 per hour.
Frederick Reilly, Senior Associate in Lewis Silkin’s Belfast office says that the impact of some of these changes may be significant to employers here.
“Beyond the obvious increase in costs, some of these updates pose some particular challenges for employers,” says Mr Reilly. “Many may need to rethink their operational strategies to manage the financial impact, focusing on more efficient resource use and possible restructuring. Small and medium-sized enterprises (SMEs), which make up a large part of Northern Ireland’s business community, may be especially affected.
“Employers should ensure that they are prepared for all of the above changes and update their payroll systems accordingly.”
The weekly rate for Statutory Sick Pay (SSP) will also rise to £118.75 per week (up from £116.75 per week). In addition, the lower earnings limit, which determines eligibility for SSP, will rise to £125 (from £123).
In Great Britain, when it comes into force, the new Employment Rights Bill will make SSP payable from day 1 of sickness and for the first 3 qualifying days of sickness. In addition, the lower earnings limit will be removed and will give those earning less than this the right to SSP at a rate of 80% of weekly earnings. It is expected that these changes will be implemented in Northern Ireland.
As well as changes to limits and awards, employers’ National Insurance Contributions will rise from 13.8% to 15%. Additionally, the threshold at which employers start paying National Insurance on an employee’s salary will be lowered significantly from £9,100 to £5,000.
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