The new National Living Wage and National Minimum Wage rates will come into effect on 1 April 2025. Additionally, changes to the National Insurance employers pay will take effect from 6 April. For many businesses, the April payroll will represent a significant increase in labor costs.
National Minimum Wage Rates
The new minimum wage rates are as follows:
- National Living Wage (21 and over): £12.21 per hour
- 18-20 Year Old Rate: £10.00 per hour
- 16-17 Year Old Rate: £7.55 per hour
- Apprentice Rate: £7.55 per hour
- Accommodation Offset: £10.66 per hour
Employers' National Insurance Changes
- The percentage rate of Employers’ National Insurance (NI) paid on an employee’s earnings will increase to 15% (from 13.8%).
- The threshold for Employers’ NI will drop to £5,000 a year, down from £9,500.
If you use online payroll software, the new Employers’ NI rates should be automatically included. However, please check with your payroll software provider if you are unsure.
Need Help?
If you need assistance with the new rates or calculating the minimum wage due to a worker, please get in touch. We are here to help you navigate these changes and ensure compliance.