The new National Living Wage and National Minimum Wage rates will come into force from 1 April 2025.
There are also changes to the National Insurance employers pay that take effect from 6 April. For many businesses, the April payroll will represent a sizeable step up in labour costs.
As a reminder, here is a quick recap of the changes.
National Minimum Wage rates
The new minimum wage rates are as follows:
Hourly Rate:
National Living Wage (21 and over) - £12.21
18-20 Year Old Rate£ -10.00
16-17 Year Old Rate - £7.55
Apprentice Rate - £7.55
Accommodation Offset - £10.66
Employers National Insurance changes
The percentage rate of Employers’ National Insurance (NI) that’s paid on an employee’s earnings increases to 15% (from 13.8%).
The threshold that an employee needs to be earning before any Employers’ NI is due drops to £5,000 a year. Previously this was £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 not sure.
If you need any help using the new rates or calculating the amount of minimum wage that is due to a worker, please get in touch. We would be happy to help you!
UK house prices recorded their steepest monthly fall in over two years in June, according to the latest data from mortgage lender Nationwide. Prices declined by 0.8%, marking the largest drop since February 2023.
The government has launched a full review of the UK’s parental leave and pay system, aiming to make it fairer, simpler and better suited to the needs of modern families.
