Employers National Insurance and National Minimum Wage increases to take effect
While some may have hoped for some backtracking in the 2025 Spring Statement, the new National Minimum Wage and Employers National Insurance increases will come into force from April 2025 as planned.
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
| National Minimum Wage rates | |
| 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 £9,100.
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 feel free to get in touch. We would be happy to help you!