2025 National Minimum Wage Update

As April 2025 approaches, the National Minimum Wage (NMW) is set to increase, marking an important change for all business owners. This is not just about wage adjustments but also has a direct impact on employers’ cost structures. It is crucial to understand how these changes affect your business and to prepare accordingly.

Comparison of NMW Rates: April 2024 vs. April 2025

• 21 and over: £11.44 → £12.21
• 18 to 20: £8.60 → £10.00
• Under 18: £6.40 → £7.55
• Apprentices: £6.40 → £7.55

Key Changes

• The National Living Wage for those aged 21 and over will increase from £11.44 to £12.21.
• The 18 to 20-year-old wage will rise from £8.60 to £10.00.
• The wage for under 18s and apprentices will increase from £6.40 to £7.55.

How to Prepare

With these changes, businesses must review their payroll systems to ensure compliance and avoid underpaying employees. We recommend:

✔ Checking the new wage rates and preparing to adjust salaries by April 2025.
✔ Updating payroll systems to avoid calculation errors due to outdated rates.
✔ Consulting with us for professional advice to ensure full compliance with the new regulations.

Additional Cost Considerations: Employer NIC Increase

Alongside the NMW rise, the increase in Employer National Insurance Contributions (NIC) will further impact business costs. From April 2025, Employer NIC will rise from 13.8% to 15%, meaning businesses must budget for these additional expenses. For small and medium-sized businesses, this presents a significant financial challenge.

Stay Ahead of the Changes

As these updates take effect, business owners must pay closer attention to payroll structures and financial planning to ensure smooth operations.

Let us help you navigate these upcoming challenges and keep your business compliant and thriving.

***Contact us to learn more.

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