Are you ready for April 2025?

The new National Living Wage and National Minimum Wage rates 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:

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.

Looking for advice? Check out our full range of services. From payroll help to taxation advice, our expert team is available to lend a hand.